New Zealand Film Commission Annual Report 2011-2012 Lambs

PO Box 11-546 Wellington www.nzfilm.co.nz

Funded by the New Zealand Government through the Ministry for Culture and Heritage and by the Lottery Grants Board G19 New Zealand Film Commission Annual Report Two Thousand and Twelve Report of the New Zealand Film Commission for the year ended 30 June 2012

In accordance with Sections 150 to 157 of the Crown Entities Act 2004, on behalf of the New Zealand Film Commission we present the Annual Report covering the activities of the NZFC for the 12 months ended 30 June 2012.

1

Patsy Reddy Andrew Cornwell Chair Board Member

Cover: Sione's 2: Unfinished Business / The Orator (O Le Tulafale) / Mr Pip / Night Shift / How Far is Heaven Highlights Who we are

This year we invested in 11 features The New Zealand Film Commission is an autonomous Crown entity established in 1978 to encourage and promote the making including two documentaries and four of films and to support the development of the film industry in low-budget projects and 22 shorts. New Zealand. In the 30 years preceding our establishment there were only 20 feature films made in this country – in the 30 years We also saw our supported films shine since there have been more than 300 with the vast majority of on big and small screens both here and them receiving our support. We have also supported numerous at international festivals. talented filmmakers in the development of their careers.

The highly acclaimed The Orator (O Le Tulafale), the first Samoan language feature film, became New Zealand’s first ever submission for the Best Foreign Language Film category of the 2012 Academy Awards®. It also achieved official selection in two What we do A-list international film festivals (Venice and Sundance). At Venice it received a Special Mention from the Orizzonti Jury, the Art We want to ensure: Cinema Award from the CICAE Jury, and the CinemAvvenire Best Film - Il cerchio non è rotondo Award. • Great stories are told through the medium of New Zealand film Sione’s 2: Unfinished Business was our most successful domestic • New Zealand films are seen and valued theatrical release, achieving a box office total of $1,817,000 • New Zealand filmmaking talent is developed and nurtured ranking it 10th on the all-time New Zealand box office list of We work to grow the industry. We do that by identifying NZFC supported feature films. filmmaking talent, helping filmmakers make their first films, and ensuring those who are successful continue to be able to make When A City Falls was Gerard Smyth’s moving documentary films in New Zealand. account of life in Christchurch during and following the earthquakes. This significant film was well received in theatres We help negotiate and manage co-production treaties and and was shown on television within the same year, where it rated are the authority responsible for certifying New Zealand very strongly. films for tax purposes. We also administer the Government’s Large Budget Screen Production Grant and the Screen Our short films continued to catch the eye of festival selectors Production Incentive Fund. In this way we support films with Night Shift, by writer/director Zia Mandviwalla, one of 10 and filmmaking from the first shorts to those with films selected for the Main Competition at Cannes. Meathead by blockbuster budgets. writer/director Sam Holst followed up success at Cannes 2011 2 with a Crystal Bear at the Berlin International Film Festival in We want to see this country’s filmmakers developing their early 2012. careers. We want the films they make to be celebrated both here and overseas. We work on their behalf to ensure their films are This year 133 teams applied for the second year of our seen by the right people and are at the right international festivals low-budget scheme, Escalator, and we received 290 applications and markets to maximise their chance of critical acclaim. for Fresh Shorts. We also network on their behalf to ensure we can introduce In our role as administrator of the Screen Production them to creative and financial partners to help them make their Incentive Fund (SPIF) and the Large Budget Screen Production next film. We want to see growing success and recognition for Grant (LBSPG) scheme, grants were made to projects including the great brands that are New Zealand and its film industry. The Hobbit, The Adventures of Tintin – The Secret of the Unicorn, and We are proud to represent the industry and the Government The WotWots (Series 2) and a provisional approval given to Jane overseas in the role of relationship building and bilateral cultural Campion’s Top of the Lake. treaty negotiation.

The 2011 Statistics NZ Screen Industry Survey reports that for the year to March 2011 feature film production revenue totalled more than $700 million and was the fastest growing contributor to this country’s $3 billion screen sector. The work we carry out is an integral part of an industry making a significant contribution to both the economic and cultural health of New Zealand. New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand Contents

2 Highlights/Who we are/What we do 4 Chair’s Introduction 5 From the Chief Executive 7 New Zealand films are seen and valued 13 Great stories are told through the medium of New Zealand film 16 New Zealand filmmaking talent is developed and nurtured New Zealand Film Commission Annual Report Two Thousand and Twelve 19 Film incentive schemes and certifications 20 Structure 21 Financials 22 Statement of Responsibility 23 Statement of Financial Position 24 Statement of Comprehensive Income 24 Statement of Changes in Equity 25 Statement of Cash Flows 26 Notes to the Financial Statements 48 Statement of Service Performance 57 Independent Auditor's Report 59 Appendix 68 NZFC Operational Units and Staff as at 30 June 2012

3 Chair’s Introduction Patsy Reddy, October 2012

I am pleased to introduce the annual report This year has also seen us working with a view towards the release of recommendations from the Screen Sector Review for the New Zealand Film Commission for due to be made public in the near future. This will be an the year ended 30 June 2012. important influence in our future direction and we are focused on ensuring that the NZFC is able to implement any changes The NZFC has continued to work amid a challenging climate smoothly and efficiently. for financing and production of independent feature film. I extend my thanks and admiration to our Chief Executive We are pleased to report that we have invested in 11 feature films Graeme Mason and his team for their hard work in supporting this year, giving the industry and movie-goers alike something and developing the New Zealand film industry, both in to celebrate. We continue to monitor budgets carefully and New Zealand and internationally, and to my fellow board 4 focus on ensuring that the NZFC delivers good value for the members for their generous commitment of their time and investments we make. We have reduced the numbers of projects expertise. I also thank the Minister for Arts, Culture and Heritage, in development with the NZFC in order to ensure more focus Christopher Finlayson, for his trust and encouragement, and (both in time and money) is given to projects that are considered the Ministry for Culture and Heritage and the Lottery Grants to have the best chance of becoming feature films. We also Board for their financial support, which is the lifeblood recognise the importance of the NZFC’s role in identifying and of all our activities. developing talent and we have invested in the development and production of low-budget features to enable talented aspiring filmmakers to develop and demonstrate their skills.

In the current year we will continue to emphasise the need to attract private investment in feature filmmaking. We see effective collaboration with international partners, either through co-productions with filmmakers in treaty jurisdictions or direct investment, as a vital means to broaden the opportunities Patsy Reddy and horizons for New Zealand film and filmmakers. We also Chair recognise the importance of demonstrating value for the money which we invest in the film industry and in working effectively with the other Government entities that have a role in the wider screen industry in New Zealand. In this regard we are keen to develop further opportunities to work collaboratively with Government agencies such as NZ On Air, Te Ma-ngai Paho, NZTE and Tourism NZ as well as screen industry groups including Film NZ, The Film Archive, Script to Screen and various industry guilds. New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand From the Chief Executive New Zealand Film Commission Annual Report Two Thousand and Twelve Graeme Mason, October 2012

The Screen Industry Survey reported a We invest in low-budget features, shorts, script and professional development with the aim of helping filmmakers develop healthy year for film in New Zealand. The their careers, contribute to the industry and make something 15% growth in revenue identified for feature special along the way. In the years ahead we want to see more filmmakers able to go it alone or secure more private investment films is a good indicator of the economic for their films. In order to do that we help filmmakers learn, impact of our sector. On behalf of the network and sell their films and ideas at international markets Government we have been involved with and festivals. We also make sure we maintain a presence and the contacts necessary to smooth the way for the filmmakers of the many of the films that have contributed future to capitalise on the achievements of their predecessors to the $3 billion screen sector, but I also and the great brand that is New Zealand film. 5 want to recognise the number of fantastic This year we have had some great performances here and overseas. Sione’s 2: Unfinished Business was the hit of the year independent films being made here. in New Zealand cinemas and The Orator (O Le Tulafale) took New Zealand films to the Oscar’s® list and A-list festivals, while We conducted a survey of the industry this year, and received the short Night Shift caught the eye of Cannes. Behind the scenes a lot of useful feedback, which we have carefully considered. at festivals and markets we held hundreds of meetings and The subject that got the most mention was the website and roundtable sessions for New Zealand producers and potential we’re very pleased to end the year moving to a new one, which producing partners. provides more information and is easier to navigate. The site will be further developed over the year ahead to provide All this readies us as an industry to put our best foot forward additional information on us and the industry. We also received when the world is watching – and they’ll certainly be watching in feedback on the choice of films that receive funding, how best the year ahead. The release of The Hobbit: An Unexpected Journey to maximise available funds and how best to operate in times of gives filmmakers a fantastic opportunity to take advantage of the fiscal restraint. We hosted several very well attended industry spotlight being shone on the New Zealand film industry. We all get-togethers. In the year ahead we’ll repeat both the survey and need to ensure the breadth of our industry’s capacity, capability, the get-togethers in order to try to address concerns, track our creativity and technological expertise are highlighted, so this progress and continually strive to improve. country can build on its already stellar reputation and make more great films. We also want to celebrate the 11 feature films we’ve invested in this year. Together they span the spectrum of genres and budgets and provide excellent examples of stories told by talented New Zealanders.

Graeme Mason Chief Executive 6 New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand

Snow in Paradise New Zealand films are seen and valued

This year a diverse range of NZFC financed films hit the silver screen – both here and on the international stage. We support a variety of genres at a wide variety of budget levels with the aim of helping films get made for New Zealanders to enjoy. We allocate money to short films, low-budget films, features, post production and film finishing grants. We also administer both the SPIF and LBSPG at the top end.

We do this work with a lofty list of goals. Firstly, we support Feature Films New Zealand Film Commission Annual Report Two Thousand and Twelve filmmakers to grow their own careers and the industry. Secondly, The feature films released domestically this year cater to a we help New Zealanders turn their stories into films for the wide range of movie-goer tastes – from serious and considered benefit of audiences. Thirdly, we promote those films, here and documentaries to comedies, romance and drama. We have been overseas, in competitions, screenings, and markets and with involved in the release of 10 films to New Zealand cinema screens a particular focus on the invaluable training and networking during the year resulting in almost 400,000 box office admissions. opportunities these festivals and events provide. This attendance builds multilateral ties and celebrates New Zealand film and Our feature films are well regarded and celebrated overseas and filmmakers worldwide. this year were selected to screen and compete at major festivals including Venice, Toronto, Berlin, and many others. Selection We recognise and congratulate all those independent filmmakers for major festivals gives us an excellent opportunity to highlight who have created films, and found audiences and acclaim New Zealand’s profile in conjunction with the Ministries for without our financial support. As the industry continues to grow Culture and Heritage and Foreign Affairs and Trade. We also had we expect to see more and more independent films finding feature films screening at festivals with a specific New Zealand audiences, and this combined with the films we support will lead focus including the Musée du quai Branly in Paris, Brussels to a vibrant and sustainable sector. We note the steady growth in Independent International Film Festival, the 6th New Zealand talented filmmakers and improved avenues for them to hone their Film Festival in China, and the Toronto International Film Festival craft with initiatives like V48HOURS, Make My Movie, Fresh and Lightbox – First People’s Cinema: 1500 Nations, One Tradition. Premiere Shorts and the Escalator low-budget scheme. The Orator (O Le Tulafale): New Zealand’s first ever submission for This year four filmmakers, who we have previously funded to the Best Foreign Language Film category of the 2012 Academy make short films, have been supported to make their first feature Awards® and official selection at two prestigious film festivals. film – Daniel Borgman with The Weight of Elephants, Tearepa Kahi with Mt Zion and Louis Sutherland and Mark Albiston who co- The film premiered in the Orizzonti section of the Venice directed Shopping. In the cases of Daniel Borgman and likewise International Film Festival receiving a Special Mention from the Louis Sutherland and Mark Albiston, their feature films were Orizzonti jury; the Art Cinema Award from the CICAE jury of the 7 funded within two years of the festival success of their recent Festival and the CinemAvvenire Best Film Award from the jury of short films. the Associazione Centro Internazionle CinemAvvenire. Lead actor Fa’afiaula Sagote was a finalist for the Best Performance by an Actor Award at the 5th Asia Pacific Screen Awards. The film was honoured with the Audience Award at the Brisbane International Film Festival and screened in the Spotlight section of the 2012 Sundance International Film Festival.

Sione’s 2: Unfinished Business: The sequel to the New Zealand comedy smash hit Sione’s Wedding, released in cinemas across New Zealand in January 2012. The film was the highest grossing New Zealand film at the New Zealand box office for the year.

Fresh Meat The Rugby World Cup We collaborated with NZ On Screen to provide cultural material for an exhibition within a set of modified shipping containers on Queen’s Wharf in Auckland, and on the Te Papa Promenade in Wellington. The containers were in place from 9 September to 23 October 2011. A customised caravan also toured the South Island for the duration of the Rugby World Cup. More than 80,000 engaged with the exhibitions, where they could see shorts like Taika Waititi’s Two Cars, One Night or superimpose themselves into the posters or scenes from iconic films such as Boy and Came a Hot Friday.

Frankfurt book fair Two Little Boys We worked closely with the Ministry for Culture and Heritage to take advantage of New Zealand's role as Guest of Honour at the prestigious 2012 Frankfurt Book Fair. The fair is the biggest book Two Little Boys: Screened in competition in the Generation section and media trade fair in the world – with around 7,500 exhibitors of the Berlin International Film Festival. from more than 110 countries attracting 300,000 visitors each The Last Dogs of Winter: World premiered in the highly regarded year. We contributed $210,000 to support the fair and for a film Real to Reel programme of the 36th Toronto International selection to be taken around the country in the lead-up to the Film Festival, and European premiere at IDFA (International main event. The films which screened were An Angel at My Table Documentary Festival of Amsterdam). Variety magazine described (director Jane Campion), Whale Rider (Niki Caro), Aphrodite's Farm The Last Dogs of Winter as an “intimate, gorgeously rendered (short/Adam Strange), Heavenly Creatures (Peter Jackson), In My documentary”. Locally, the film screened around New Zealand as Father's Den (Brad McGann), Tama Tu (short/Taika Waititi), Boy part of the 2012 New Zealand International Film Festival (NZIFF) (Taika Waititi) and Once Were Warriors (Lee Tamahori). and later went on general release.

Brother Number One: World premiered in the 2011 NZIFF and international premiere at IDFA. The film’s director Annie Goldson, was awarded Best Director for a Documentary, Aotearoa Film & Television Awards 2011. The film was released in New Zealand in March 2012. 8 Love Story: Opened the NZIFF and was the recipient of the 2011 DGA/SDGNZ Director’s Finder Series Screening, which is a partnership between the Screen Directors Guild of New Zealand (SDGNZ) and the Directors Guild of America (DGA). The purpose of the initiative is to spotlight undistributed independent feature films from New Zealand and their directors. This marks the third of these joint DGA/SDGNZ screenings.

Billy T: Te Movie: Was selected to screen in the Balinale Film Festival in Bali, and was awarded the Audience Choice Award for Best Documentary.

When A City Falls: Opened in New Zealand in November 2011 and received strong reviews before being shown on TV3 in 2012.

The Devil’s Rock: Continued its sales success from Cannes 2011, with further distribution deals for Japan, German-speaking Europe, Australia and Latin America. The film is now licensed to more than 30 countries.

Other sales highlights include Boy (further sales to Slovenia, Spain and France), Tracker (further sales to China, Commonwealth of Independent States, Singapore and Scandinavia), My Wedding and Other Secrets (Scandinavia, Netherlands, China, Estonia, Latvia and Lithuania) and The Most New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand Fun You Can Have Dying (worldwide airline rights). The films that screen both here and overseas build an audience This year 30 NZFC-supported feature films screened on local and demand for those films on DVD, Blu-ray and television. free to air television channels attracting more than 2.7 million During the year more than 13,000 copies each of Billy T: Te Movie viewers with an average of more than 85,000 people watching and Sione’s 2: Unfinished Business, and more than 18,000 copies each screening. The most popular were When A City Falls which of When A City Falls were purchased on DVD or Blu-ray. screened to 377,034 viewers, Sione’s Wedding with 319,283 viewers, Under the Mountain with 210,216 viewers and Whale Rider with 209,361 viewers. All up nine films each attracted audiences of more than 100,000. New Zealand Film Commission Annual Report Two Thousand and Twelve *Source: Nielsen Television Audience Measurement.

International festivals and Markets Film Festivals with a New Zealand Focus Venice Film Festival Musée du quai Branly, Paris The Orator (O Le Tulafale) had its world premiere In Competition From 23 – 31 October nine feature and six short films screened at in the Orizzonti section of the festival. Musée du quai Branly in Paris. The screenings were organised to Writer/director Tusi Tamasese and producer Catherine support the Te Papa exhibition E Tu Ake at the museum. Fitzgerald attended. The features that screened were: Ngati, Utu, The Strength of Water, Toronto International Film Festival (TIFF) Rain of the Children, Mauri, Boy, Once Were Warriors, Whale Rider, Premiered The Last Dogs of Winter. and This Way of Life; Short films were Tama Tu, Taua, Run, The Producer/director Costa Botes attended with Brian Ladoon Graffiti of Mr Tupaia, Day Trip and Two Cars, One Night. and Caleb Ross, who feature in the documentary. Brussels Independent International Film Festival American Film Market (AFM) The festival ran from 1 – 6 November. Four feature films screened Screened The Devil’s Rock, The Last Dogs of Winter and The Orator – Matariki, Predicament, My Wedding and Other Secrets and Russian (O Le Tulafale) Snark and five shorts – Hauraki , Blue, Preferably Blue, Munted and Alongside AFM, NZFC sponsored a Director's Finders event Ebony Society. My Wedding and Other Secrets actress Celeste Wong screening of Love Story co-hosted by the DGA and SDGNZ and attended the festival. held in the DGA theatre in Hollywood. Three major awards of the festival went to New Zealand films: There was a Q&A session after the screening with writer/director Grand Award/Best Film – Russian Snark by Stephen Sinclair Florian Habicht. Best Direction Award – Matariki by Michael Bennett Best Actor – Iaheto Ah Hi as Tyrone in Matariki Berlin International Film Festival and European Film Market Two Little Boys had its world premiere In Competition 6th New Zealand Film Festival in China in the Generation 14plus section of the festival. Co-writer Established in 1998, the festival is hosted in alternate years 9 Duncan Sarkies attended and a Q&A session followed the by China and New Zealand. This year the festival was held in premiere screening. China in Qingdao, Beijing and Guangzhou from April – May Two Little Boys also screened in the market. 2012. It is presented jointly by the Film Bureau of The State Administration of Radio, Film and Television and the NZFC, Cannes Film Festival and Market and the festival is coordinated by the Pacific Culture and Arts Twenty-one filmmakers attended and were supported by a central Exchange Centre (NZ). office and meeting space and daily debriefs. The feature films screened were: Love Birds, Predicament, My NZFC co-hosted producer networking meetings with the Irish Wedding and Other Secrets, The Hopes and Dreams of Gazza Snell Film Board, The Film Agency for Wales, Screen Australia, and the and The Strength of Water and the short films were: Fog, Run, British Film Institute at the NZFC offices; and with the National Coffee & Allah, Noise Control and Blue. Film Development Corporation of India at their pavilion offices. Toronto International Film Festival Lightbox – First People’s In addition to the above, NZ feature films screened at 47 Cinema: 1500 Nations, One Tradition international film festivals during the period. A programme of first people’s films spanning Canada, the US, Australia and New Zealand. The festival ran from 12 June – 19 August 2012 and screened at TIFF Lightbox in Toronto, before touring Canadian towns. Thirteen films from New Zealand screened – The Orator (O Le Tulafale) (opened the programme), Once Were Warriors, Eagle vs Shark, Ngati, Mauri, Mana Waka, Bastion Point Day 507, Patu! and Utu. Short films screened – Taua, Sacred Spaces, Tama Tu and Coffee & Allah. Writer/director Tusi Tamasese and Heperi Mita (representing the late Merata Mita) attended the festival. Shorts Hitch Hike: Made with a Fresh Short grant of $10,000 this film was selected for the highly prestigious Tampere Short Film New Zealand short films continue to punch above their weight, Festival in Finland among considerably more resourced films. enjoy critical acclaim here and overseas, and contribute Director Matthew Saville attended the festival and while there significantly to building our international brand and awareness worked with our contacts to further develop relationships with of our industry. This highlights the importance of short films the Finnish Film Foundation and independent Finnish producers. as an art form in their own right in addition to the career development of their filmmakers. Snow in Paradise: Co-directed by two Pasifika women Nikki Si’ulepa and Justine Simei-Barton, this was filmed entirely This year saw releases including Lambs, Snow in Paradise, on Aitutaki in the Cook Islands. The film examines the effect Hitch Hike, 43,000 Feet, Whakatiki, Night Shift and nuclear testing had on the Pacific and its people. It has proven Sonny, My Older Brother. a highly popular film for festivals this year and was selected Night Shift: Competed for the 2012 Short Film Palme d'or at for the prestigious Berlin International Film Festival as part Cannes as one of 10 films selected from among the 4,500 films of their Generation programme. that were submitted to the selection committee. Writer/director Lambs: This film launched at Clermont-Ferrand in France in Zia Mandviwalla and producer Matt Noonan were supported to January 2012. It was our flagship film at what is widely considered attend the festival. the biggest short film festival in the world. Also selected for Sonny, My Older Brother: Had its World Premiere at the 2012 Berlinale Generation Lambs was shot in Porirua and features a Edinburgh International Film Festival. This is the second short cast drawn from the local area. film from writer/director Tammy Davis. Davis’s first film Ebony Clermont-Ferrand is also a market and we run a New Zealand Society was still showing in the international marketplace when stand that is very popular with European festival programmers Sonny, My Older Brother began its run. Ebony Society won the ING looking for the latest short films from a country renowned for DIRECT award for Best Short Film at Flickerfest in Sydney, which strong content. We sell to buyers from across the continent. means Ebony Society is now eligible for consideration for the Academy Awards®. It was also selected as one of the Top 50 Meathead: Post its selection for Cannes 2011, Meathead also went short films in the world through the Your Film Festival being on to win a Crystal Bear at the Berlin International Film Festival run by YouTube in conjunction with world renowned filmmaker in early 2012. Ridley Scott. There were three New Zealand short films in the Top 50 – Ebony Society and two films from the Media Design School (Das Tub and Dr Grordbort Presents: A Dangerous Game). The selection of three New Zealand films out of 50 worldwide clearly emphasises the strength of New Zealand short films in 10 the international marketplace.

Whakatiki: Selected for the Tribeca Film Festival in New York for its World Premiere. Director Louise Leitch and producer Melissa Dodds attended the festival with our support. Following on from Tribeca Whakatiki was selected for LUNAFEST a coast-to-coast event with more than 150 North American screenings each season. 20,000 people are expected to attend LUNAFEST’s 2011-2012 season.

43,000 Feet: The film’s two producers Heather Lee and Amber Easby were supported to attend the film’s World Premiere in Tribeca, New York. This film has continued to enjoy success across North America with an award from Traverse City and Night Shift screenings at Chicago and Milwaukee film festivals. New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand Key Festival Selections short Films Selected Distribution Support 2011/12 We offer financial assistance to domestic distributors of Melbourne Blue, Meathead, Ebony Society, New Zealand feature films to help maximise the New Zealand Go the Dogs domestic theatrical audience. New York Blue In the period under review, 10 features with NZFC production investment screened in New Zealand cinemas. We provided BFI London Bird strategic, logistical and financial support in the form of prints Vallodolid Blue and advertising grants for each release. New Zealand Film Commission Annual Report Two Thousand and Twelve

Clermont Ferrand Lambs Love Story Berlin Snow in Paradise, Meathead, Writers: Florian Habicht, Peter O’Donoghue Lambs Director/producer: Florian Habicht NZ release date: August 2011 Tampere Hitch Hike Tribeca 43,000 Feet, Whakatiki Billy T: Te Movie Writers: Phil Gifford, Ian Mune Edinburgh Sonny, My Older Brother, Brainy Director: Ian Mune Cannes Night Shift Producers: Tom Parkinson, Robert Boyd-Bell NZ release date: August 2011

Locally the New Zealand International Film Festival plays an The Devil’s Rock integral role in getting shorts to audiences and often provides Writers: Paul Finch, Paul Campion, Brett Ihaka them with their domestic premiere. The festival this year selected Director: Paul Campion 12 shorts, which screened in four specific shorts programmes. Producer: Leanne Saunders They also paired shorts to screen before feature films in a double NZ release date: September 2011 billing, which significantly increased their exposure. Blue and Ebony Society each screened to more than 2,600 people. The Orator Writer/director: Tusi Tamasese Following the collapse of the CTV building in Christchurch during Producer: Catherine Fitzgerald the February 2011 earthquake, the broadcaster appealed for NZ release date: October 2011 content that could be played on its channel. We were happy to supply three collections of short films for audiences to enjoy. Rest for the Wicked Writer: Bob Moore Several other local festivals screened our short films Director: Simon Pattison - 11 including the Wairoa Maori Film Festival, Show Me Shorts Producer: Maile Daugherty and The Film Society. NZ release date: November 2011

In addition to these festivals and events many of our short films When A City Falls were shown on television and were released through the website Director: Gerard Smyth - NZ On Screen. Manurewa screened on Maori Television and Producers: Gerard Smyth, Alice Shannon the following shorts were shown on the Rialto Channel: Kehua, NZ release date: November 2011 Aphrodite’s Farm, Amadi, Choice Night, Day Trip, The Winter Boy, Vostok Station, Zero, Redemption, Roof Rattling, Double Happy, Little Sione’s 2: Unfinished Business Angel and Two Cars, One Night. Writers: James Griffin, Oscar Kightley Director: Simon Bennett Producers: John Barnett, Paul Davis NZ release date: January 2012

Brother Number One Director: Annie Goldson Producers: Annie Goldson, Rob Hamill, James Bellamy NZ release date: March 2012

The Most Fun You Can Have Dying Writer/director: Kirstin Marcon Producer: Alex Cole-Baker NZ release date: April 2012

Shihad: Beautiful Machine Director: Sam Peacocke Producers: Grant Roa, Laurence Alexander Lambs NZ release date: May 2012 At a glance new zealand films are seen and valued Number of NZFC-funded feature films released locally 10 Total estimated annual domestic admissions for all NZFC-funded films released in 2011/12 393,000 Number of NZ films accessing the NZFC P&A grant 12 Total cost of P&A grants paid to distributors of NZ films $476,325 Number of feature films selected for A-list festivals 3 Cost of festival travel assistance for feature filmmakers $12,646 Number of international markets attended by NZFC 5 Number of short films selected for A-list festivals 13 Cost of festival travel assistance for short filmmakers $43,653 Number of film festivals with a Sonny, My Older Brother New Zealand focus 4

12 New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand Great stories are told through the medium of New Zealand film

Script Development Seed Development Fund (SDF) We are committed to supporting creative excellence through This fund was formerly known as the Writer Development Loan. the development of scripts depicting New Zealand stories or In the year in review the initiative provided development loans of a specific New Zealand vision. Sometimes that work provides up to $9,000 to writers to move a robustly edited outline forward an insight into aspects of traditional New Zealand culture, to a treatment or first draft. Applications are made without a sometimes it portrays a New Zealander’s vision of another producer formally attached to the project. In any given financial New Zealand Film Commission Annual Report Two Thousand and Twelve culture, and sometimes a vision of an entirely made-up world. year we aim to approve up to 10 applications and we have seen an A key component of this commitment is our active increase in projects that have received this funding progressing encouragement and support of work with Ma-ori and Pacific on to the next level of development. Island content and themes. As well as encouraging Ma-ori projects to apply for support through our script development Early Development Fund (EDF) process, we support Te Paepae Ataata as an alternative pathway These loans are commonly invested in films at the early draft - to develop Maori writers and their film scripts. stage of development with the aim of getting the project to the stage where it can seek financial and creative partners. The In 2011/12 we continued to fund the development of cap for the year was set at an overall accumulation of $40,000 New Zealand stories and writers, through both direct and and writers with a feature film credit were able to apply for the devolved script funding. In addition to financial support, first $20,000 without the attachment of a producer. In any given our specialist development staff provided detailed creative financial year we aim to approve up to 12 new project applications. feedback on numerous projects in development.

As well as evaluating applications on a creative level we also test the market viability of projects at the early stages. We aim to balance our commitment to the development of a range of projects and talent with the creation of a sustainable body of viable projects, which can naturally progress through to production financing.

During the year we made a number of changes to the way we support the development of scripts. We introduced new script development funding guidelines and funding caps in September 2011 with the aim of lifting the quality bar and reducing the 13 number of projects that the NZFC is actively supporting in development.

We received a total of 167 applications for development funding, of which 53 (32%) were approved. As part of comprehensive changes within the development team, and in line with suggestions made in the Jackson/Court Review, development executives are working more closely with projects and talent by increasing their availability to them.

The following development funding options were available during the 2011-12 year. Advanced Development Fund (ADF) Production Funding These loans are invested in projects approaching the production We invest in films that reflect New Zealand culture, show clear stage where financial and creative partners are being confirmed. potential to connect with New Zealand audiences, achieve The cap was set at an accumulated $70,000. critical acclaim and progress filmmakers’ careers. This year we committed $10.897 million to the production of 11 feature films. International travel assistance has been separated from the There were seven new projects (including two documentaries) Advanced Development Fund and producers must now apply for and four low-budget features supported via Escalator scheme Producer International Travel Assistance separately. and the Make My Movie Project. The projects we supported were: Finally – at the top end of the scale projects that have • The Weight of Elephants: an unofficial co-production with high- accumulated $70,000 in NZFC loans were required to apply profile Danish production company Zentropa and first feature to the CEO and board for further development funds and film from this award-winning short filmmaker. Producer were considered on the recommendation of the CEO and the Leanne Saunders, writer/director Daniel Borgman. development team. • Mt Zion: the first feature film from producer Quinton Hita and Several projects that received script development support went director Tearepa Kahi. into production this year including Mt Zion, The Weight of Elephants • The Medicine Woman: New Zealand resident and award-winning and Shopping. Our development executives worked closely with Mexican writer/director Dana Rotberg’s largely te reo film the writers of these projects to successfully move them into based on a Witi Ihimaera novella. Producers John Barnett production. Giselle and The Medicine Woman were supported and Chris Hampson. via devolved development funds awarded to the producers of • Shopping: the first feature film from award-winning (and those projects. Oscar® long-listed) short filmmakers Mark Albiston and Louis Sutherland (Six Dollar Fifty Man). While our primary focus remains dramatic (as opposed to • How Far is Heaven (documentary): the first feature film from documentary) filmmaking we do offer Documentary Development new directing talent Miriam Smith and Christopher Pryor. Funding for a limited number of feature documentaries with clear • The Dark Horse: from producers Tom Hern and Jim Marbrook potential to appeal to domestic cinema audiences. and writer/director James Napier Robertson.

At a glance • Giselle (documentary): a feature length documentary from experienced producer Matthew Metcalfe and director Toa Development Applied Approved Fraser in collaboration with the Royal New Zealand Ballet. Early Development Fund 155 45 • The Escalator films that received funding for the year were Fantail, Shirley & the Hungary Bear and Everything We Loved. • Narrative Features 74 37 How to Meet Girls from a Distance was funded through Make 14 • Documentaries 5 1 My Movie. • Several of these films have also received support from • Writer Development NZ On Air. Loan/Seed Development Fund 76 7 We committed additional funding to Mr Pip (based on the novel Advanced Development Fund by Lloyd Jones and filmed in Bougainville and New Zealand), the (including CEO Delegation) 10 6 well regarded Christchurch earthquake documentary When A City Board Development 2 2 Falls and the rock opera Romeo & Juliet: A Love Song.

Total amount of Early We also committed funding to restoring a director’s version of Development Fund support $569,980 the important New Zealand film Utu (director: Geoff Murphy, Total amount of Advanced restoration producer: Graeme Cowley). This restoration project Development Fund support $202,297 is also being supported by the original private investors, The Film Archive and Park Road Post.

The two documentaries we supported have quite different subject matter. However they are both director-led explorations of unique aspects of New Zealand life and culture. How Far is Heaven follows the lives of the Sisters of Compassion and the children of the community of Jerusalem situated alongside the Whanganui River. Giselle is an innovative take on the Royal New Zealand Ballet’s upcoming production of the same name.

Mt Zion, The Medicine Woman, and Shopping have particularly strong New Zealand cultural content, while we expect The Weight of Elephants and Giselle to show extensive filmmaking creativity. New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand We also expect Giselle and Romeo & Juliet: A Love Song to bring in new audiences to NZFC-supported films. While most of these films are yet to hit movie screens,When A City Falls has already had a successful release and was also shown on television.

Feature Film Finishing Grant This year we committed a total of $110,125 in feature film finishing grants to eight independently produced feature films (of which all but one were documentaries): New Zealand Film Commission Annual Report Two Thousand and Twelve • Moving (NZIFF 2011) • Russian Snark (general release 2011) • Mental Notes (World Cinema Showcase 2012 and general release 2012) • The Red House (NZIFF 2012) • Pictures of Susan (NZIFF 2012) • The Last Ocean (NZIFF 2012) • Song of the Kauri (NZIFF 2012) • Tatarakihi – The Children of Parihaka (NZIFF 2012)

At a glance great stories are told through the medium of new zealand film Number of new feature films (including 11 low-budget) awarded NZFC production finance Number of feature films with additional NZFC 4 production finance (including restoration) Total amount of feature film investments $10,897,000 Number of feature film finishing grants 8 Total cost of feature film finishing grants $110,125 15

How to Meet Girls from a Distance Fresh Meat New Zealand filmmaking talent is developed and nurtured

We identify new writing, directing and producing talent with a number of schemes designed to create a pathway through to feature films and an opportunity to forge alliances with each other. Shorts Low-Budget Features We want to support talented filmmakers to hone their skills and This year we invested in three Escalator films at $250,000 per prove their talent at the short film stage and help them progress film including one animated feature. The Escalator scheme to making feature length films. supports feature film projects designed with a low-budget methodology in mind and gives newer filmmakers the chance We run the following schemes: to work together in an atmosphere encouraging alternative • Fresh Shorts thinking. The Escalator teams are given extra mentoring and Sixteen films were funded through this scheme. Eight were support in order to help their films get made. The three projects awarded $10,000 and a further eight were awarded $30,000. supported were: We received nearly 300 applications for this fund in 2011. • Fantail (writer: Sophie Henderson, director: Curtis Vowell, We set clear criteria and choose the most promising projects producer: Sarah Cook), a live-action feature, which is expected in collaboration with the industry members on the decision to reach post-production stage by late 2012. panel. We invest time in making sure that we engage frequently • Shirley & the Hungary Bear (writer: Wayne Ching, director: with potential applicants prior to application so that they are Alan Dickson, producer: Glen Real), an animated feature film, in the best position to understand the criteria their work which will take two years to complete. needs to reach to get funded. Once funded, we invest time • Everything We Loved (writer/director: Max Currie, producer: in helping filmmakers to finish their films to the best Luke Robinson), a drama feature film to shoot late 2012. standards possible. We also collaborated with NZ On Air and The New Zealand Herald • Premiere Shorts to support the inaugural Make My Movie project (driven by Six Premiere Shorts were each awarded $90,000 in 2012. the people behind the very successful V48HOURS film event). Given the larger budget, these shorts are expected to Following a nationwide competition a Wellington based project demonstrate a sophisticated approach to short filmmaking How to Meet Girls from a Distance (writers: Dean Hewison, and build reputations and careers internationally. The selected Richard Falkner and Sam Dickson, director: Dean Hewison, 16 projects are chosen by respected industry members working producers: Ruth Korver and Andrew Beattie) was chosen. as executive producers on this scheme. The total production financing offered to the team was $100,000 ($50,000 from the NZFC and $50,000 from NZ On Air). • Post production funding Both How to Meet Girls from a Distance and Existence (funded We supported seven projects through this fund, which enables through Escalator 2010) were selected to screen at the 2012 final completion and delivery of master materials to festivals. Melbourne International Film Festival/37 Degrees South and at Films can only access this fund when they are invited to screen the 2012 New Zealand International Film Festival. How to Meet at an A-list international film festival. Girls from a Distance has also secured a distribution agreement • Travel funding with Madman. We support filmmakers to accompany their films to high profile festivals screenings where they will have the opportunity to Professional Development build relationships important to their career development. We invest in developing the careers of filmmakers alongside Thirteen filmmakers attended festivals in France, Germany, or in addition to our investment in films. We support a vast Finland and North America. number of training opportunities, including in partnership with industry guilds, and facilitate valuable relationships where mentoring can occur.

During the year we granted 11 Professional Development Awards to film professionals who already have feature film credits. Successful applicants included cinematographers, actors, writers, producers, sound engineers, designers and composers who were supported to attend significant professional development opportunities locally and internationally. New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand There were also three CEO Professional Development Development of Te Reo Delegations granted during the financial year: and Tikanga Films • My Wedding and Other Secrets writer/director Roseanne Liang In the past year we have supported a number of initiatives in attended the 2011 Golden Rooster Film Awards (the most order to support the development of Ma-ori films and filmmakers. prestigious film awards in China). The primary kaupapa is to instil confidence and to empower the • Filmmaker Welby Ings was supported to take a place at the filmmaking talent in Ma-ori communities and rohe. Binger Director’s Artist in Residency. We worked closely with and supported Te Paepae Ataata to • Lambs short film writer/director Sam Kelly attended the Judith New Zealand Film Commission Annual Report Two Thousand and Twelve Weston Workshop in Amsterdam. develop the feature film The Pa Boys, and funded two feature films (The Medicine Woman and Mt Zion) and the Fresh Short Purerehua We also granted Talent Awards of up to $50,000 each to with te reo content. filmmakers with a number of projects on their slate and/or who had particular success in the year. These awards are intended for We supported Nga- Aho Whakaari with funds to run a film covering the recipient’s overheads and direct costs while they are training initiative called Aho Whakaari Shorts. Nga- Aho developing a slate of nominated projects. This year awards were Whakaari connected with iwi throughout the North Island given to Tammy Davis, Catherine Fitzgerald, Florian Habicht, Sam and organised eight writer’s workshops, which were run in Holst, Stephen Kang, Mike Riddell, Robert Sarkies and Duncan various locations including Wairoa, Rotorua, Hokianga, Sarkies, Tusi Tamasese, Nick Ward and South Pacific Pictures. Waiariki and Waikaremoana.

We supported four Director Internships, and a first Emerging There are also a number of Ma-ori filmmakers who have received Producer Internship during the year. project development funding directly from the NZFC. The internships are designed to give emerging filmmakers work At a glance on a film with a budget of at least $500,000. The trainee director or producer is funded for 14 weeks' work on the agreed project at new zealand filmmaking talent is developed a cost of $10,000 per internship. and nurtured We also ran 30 individual training initiatives independently and Number of new shorts films funded 22 in partnership with industry guilds and training institutions. Total amount of short film investments $860,000 These included New Zealand-based workshops, international labs, internships and master-classes and ranged from the Number of post production grants for professional level through to primary schools, high schools and short films 7 tertiary training institutions. Total cost of post production grants for short films $64,112 We supported a number of filmmakers to attend A-list 17 festivals including through our Producer International Travel Number of low-budget features funded 4 Assistance (PITA) fund and CEO delegated travel programme. Cost of low-budget feature initiatives $860,000 This international presence is invaluable for ensuring both the Number of training initiatives promotion of individual films and the New Zealand film industry (NZFC, joint, PITA) 52 overseas. It also provides a vital opportunity for filmmakers to attend training events, secure distribution and finance and Number of Professional Development Awards network with industry counterparts. including CEO Delegations 14 Cost of Professional Development Awards $62,410 Number of Talent Awards 10 Cost of Talent Awards $240,000

Whakatiki Whakatiki

Night Shift Snow in Paradise

18

Hitch Hike

Beatle Honk If You're Horny New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand

Honk If You're Horny The Weight of Elephants Film incentive schemes and certifications

Certification of Co-Productions Administration of the Screen With little prospect of positive change in the global economy Production Incentive Fund (SPIF) in the near future, official co-productions remain an attractive We continued to provide administrative services for the option for New Zealand producers. As well as providing access Government’s SPIF scheme with the Ministry for Culture and to foreign incentives and subsidies, official co-productions allow Heritage, which is responsible for paying the grant. SPIF has the sharing of creative and technical resources and increase been in place since 2008. understanding of the way production and distribution works in Over the course of the financial year, the SPIF Committee met other countries. They build on relationships and are also often New Zealand Film Commission Annual Report Two Thousand and Twelve the only viable way to structure larger, more complex film and on 10 occasions to approve, decline or adjust the applications, to television productions. ensure the application process runs in a transparent, consistent and timely fashion and to work with and develop the criteria. The We are the “competent authority”, responsible for constitution of the SPIF Committee is set out in the Structure administering official co-production applications on behalf section of this document. of the New Zealand Government. A full government review of the SPIF scheme began in the last In the year to 30 June 2012 we received two applications quarter of 2011 and we expect recommendations from that review (one with Australia and one with Germany) for provisional in the near future. approval. One New Zealand/Germany application was received for final approval (see Appendix for details). This year SPIF grants were paid to six projects.

A new film co-production agreement with South Africa was The SPIF Committee also considered provisional certification signed in September 2011, bringing the tot al number of applications for 10 projects. Details of all projects receiving SPIF international co-production treaties or agreements to which grants or provisional certification are set out in the Appendix. New Zealand is a party to, to 13, as at 30 June 2012. At a glance New Zealand officials continued to progress negotiations with China over a new television co-production agreement, Film incentive schemes and certifications which would supplement the current film-only agreement. Total number of co-production treaties and agreements 13 Certification of films as Number of co-productions certified 2 provisional, New Zealand films 1 final We continue to be responsible under the Income Tax Act for Number of New Zealand films certified certification of “New Zealand films”. In the year to 30 June 2012 for tax purposes 3 19 three applications were received for final approval (see Appendix Number of projects considered by the for details). LBSPG panel 4 Administration of the Large Budget Number of SPIF final applications 6 Screen Production Grant (LBSPG) Number of SPIF provisional applications 10 and Post, Digital and Visual Effects Grant (PDV Grant) We continued to provide administrative services for the Government’s LBSPG scheme on behalf of the Ministry of Business, Innovation and Employment, which is responsible for paying the grant. The LBSPG has been in place since 2003 and has included the PDV Grant since 2007.

The LBSPG panel, which assesses applications for grants, met on three occasions to approve, decline or adjust applications, to ensure the application process is transparent, consistent and efficient and to work with and develop the criteria.

In 2011/12 The Hobbit, The Adventures of Tintin – The Secret of the Unicorn, and The Rise of the Planet of the Apes accessed the LBSPG and X-Men: First Class received a PDV Grant.

A government review of the LBSPG scheme began in the last quarter of 2011 and we expect to receive recommendations from that review in the near future. Structure

Board 4. The Large Budget Screen Production Grant (LBSPG) Panel We have three key decision-making bodies. In addition we also administer the LBSPG scheme on behalf of the Ministry of The NZFC continued to provide administrative services for Business, Innovation and Employment. the Government’s LBSPG scheme. We are responsible for convening and chairing meetings of a panel that assesses 1. The Board applications for grants. The panel comprises a representative from the Ministry for Business, Innovation and Employment, The NZFC Board is a statutory body and provides governance industry practitioners, the NZFC Chief Executive or Deputy and policy direction for the Commission. For the period under Chief Executive as chair of the meetings and the NZFC Head of review, the Board held six scheduled meetings in Wellington. Business Affairs. A nominated representative from the Inland Members for the year to 30 June 2012 were: Revenue Department is entitled to attend meetings of the panel as an observer. Industry practitioners for the year to Patsy Reddy (chair), Andrew Cornwell, Charles Finny, 30 June 2012 were Tim Sanders, Trishia Downie and Catherine Rhiannon McKinnon, Witi Ihimaera, Chris Hampson and Madigan. Tim Sanders retired from the Committee during Cameron Harland. the year and was replaced in August 2012. All members are appointed by the Minister for Arts, Culture and Heritage. Operations In the period we continued to collaborate with a number of related 2. The Finance and Audit Committee agencies. We worked closely with the The Film Archive on the This committee of Board members oversees financial issues films selected for the Frankfurt Book Fair travelling film festival and risk management. The committee works in accordance and promoted New Zealand as a film production destination at with rules formulated by the NZFC. Members for the year to various international markets and festivals on behalf of Film 30 June 2012 were: NZ. In the case of NZ On Air, in addition to the Make My Movie Andrew Cornwell (chair), Patsy Reddy and Rhiannon McKinnon. project and joint investment in a number of films, we share a Senior Communications Advisor, jointly commissioned a public 3. The Screen Production Incentive Fund perception survey and continue to support each other through Committee (SPIFCOM) shared research. This committee, appointed by the Board, is responsible for Our permanent staff of 22 is led by Chief Executive assessing whether provisional and final applications satisfy the Graeme Mason. criteria for the SPIF grant. Payment of the grant is dependent The NZFC continued to observe its human resources policies on verification from the Inland Revenue Department. One 20 and procedures, which are formally recorded and include a nominated representative from each of the Ministry for Culture commitment to equal employment opportunities by elimination of and Heritage and the Inland Revenue Department are invited all aspects of policies, procedures, practices and any institutional and entitled to attend meetings of SPIFCOM as observers. barriers that may cause or perpetuate inequalities in respect of Its members for the year to 30 June 2012 were: employment opportunities for any person or groups of persons. • NZFC Board members: Rhiannon McKinnon and Policies on being a good employer as outlined in the Crown Andrew Cornwell Entities Act 2004 are operational. These include ensuring that • NZFC Staff: Naomi Wallwork, Graeme Mason and all employees have opportunities to achieve their potential, Mladen Ivancic recognising and valuing employees’ different skills, talents, • Independent Screen Production Industry Professionals: experiences and perspectives, and their different cultural Sharon Menzies, Vincent Burke, Sue Rogers, Richard values and beliefs, recognition of the aims and aspirations of Fletcher, Trishia Downie (Matthew Metcalfe retired from Ma-ori, and recognition of the aims, aspirations and employment the Committee during the year). requirements of ethnic or minority groups, women, and persons with disabilities. Equal employment opportunities are incorporated in staff selection and management, to achieve as diverse personnel as possible given the small size of the NZFC. New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand Financials New Zealand Film Commission Annual Report Two Thousand and Twelve

21

Mt Zion Statement of Responsibility For the year ended 30 June 2012

Pursuant to the Crown Entities Act 2004, the Board of the New Zealand Film Commission accept responsibility for: - The preparation of the New Zealand Film Commission’s financial statements and statement of service performance, and for the judgements used therein. - The establishment and maintenance of a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial and non-financial reporting. In the opinion of the Board of the New Zealand Film Commission, the financial statements and statement of service performance set out on pages 23 to 56 fairly reflect the financial position and operations of the New Zealand Film Commission for the year ended 30 June 2012.

Signed on behalf of the Board:

Patsy Reddy Andrew Cornwell Chair Board Member

31 October 2012 22 New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand Statement of Financial Position AS AT 30 june 2012

Note 2012 2012 2011 Actual Budget Actual $ $ $ Equity Accumulated funds 9,949,155 4,977,000 10,426,703 New Zealand Film Commission Annual Report Two Thousand and Twelve

Total Equity 9,949,155 4,977,000 10,426,703

Represented by: Current Assets Cash and cash equivalents 3 2,787,409 3,500,000 7,430,312 Investments 4 3,353,808 8,000,000 9,000,000 Trade and other receivables 5 6,942,702 2,000,000 1,767,798 Total Current Assets 13,083,919 13,500,000 18,198,110

Non-Current Assets Investments 4 3,943,276 0 0 Property, plant & equipment 6 373,322 450,000 484,572 Intangible assets 7 24,720 50,000 50,677 Total Non-Current Assets 4,341,318 500,000 535,249

Total Assets 17,425,237 14,000,000 18,733,359 23

Less Liabilities: Current Liabilities Trade and other payables 8 1,263,066 1,600,000 1,320,235 Employee entitlements 9 165,521 0 117,432 Film income account 10 290,200 400,000 308,509 Project commitments 11 5,757,295 7,023,000 6,560,480 Total Current Liabilities 7,476,082 9,023,000 8,306,656

Total Liabilities 7,476,082 9,023,000 8,306,656

Net Assets 9,949,155 4,977,000 10,426,703

Explanations of significant variances against budget are detailed in note 28. The accompanying notes on pages 26 to 47 form part of these financial statements. Statement of Comprehensive Income for the year ended 30 june 2012

Note 2012 2012 2011 Actual Budget Actual $ $ $ Income Government grant 2 3,401,000 3,401,000 3,401,000 Government grant - SPIF (NZFC Co-invest) 2,000,000 2,000,000 2,270,601 Lottery Grants Board grant 11,924,181 10,075,000 12,045,573 Income from films 10 484,593 450,000 564,213 Distribution fee 10 220,568 195,000 417,506 Interest 694,643 600,000 757,117 Writebacks 0 0 1,328,262 Other income 65,360 10,000 75,915 18,790,345 16,731,000 20,860,187 Government grant revenue - SPIF 18 4,937,558 14,111,000 15,697,334 Total Income 23,727,903 30,842,000 36,557,521

Expenditure Development 12 1,429,525 1,985,000 2,202,098 Production 13 12,778,083 12,450,000 13,499,295 Festival and industry support 14 707,500 625,000 786,000 Marketing & sales 15 1,187,481 1,385,000 1,069,802 Corporate 16 1,294,001 1,406,000 1,309,467

24 Personnel costs 17 1,871,303 1,903,000 1,787,813 19,267,893 19,754,000 20,654,475 Government grant allocation - SPIF 18 4,937,558 14,111,000 15,697,334 Total Expenditure 24,205,451 33,865,000 36,351,809 Surplus/(Deficit) (477,548) (3,023,000) 205,712 Other Comprehensive Income 0 0 0 Total Comprehensive Income (477,548) (3,023,000) 205,712

Explanations of significant variances against budget are detailed in note 28. The accompanying notes on pages 26 to 47 form part of these financial statements.

Statement of Changes In Equity for the year ended 30 june 2012

Note 2012 2012 2011 Actual Budget Actual $ $ $ New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand

Equity at 1 July 10,426,703 8,000,000 10,220,991 Total Comprehensive Income (477,548) (3,023,000) 205,712 Equity at 30 June 9,949,155 4,977,000 10,426,703

The accompanying notes on pages 26 to 47 form part of these financial statements. Statement of Cash Flows for the year ended 30 june 2012

Note 2012 2012 2011 Actual Budget Actual $ $ $

Cash Flows from Operating Activities

Receipts from the Crown & other income 20,101,263 16,131,000 35,875,884 New Zealand Film Commission Annual Report Two Thousand and Twelve Interest received 740,964 600,000 822,731 Payments for production funding, marketing, industry support, to suppliers and employees (24,986,663) (20,790,000) (40,457,971) Goods and services tax (net) (495,569) 0 (335,320) Net Cash from Operating Activities 26 (4,640,005) (4,059,000) (4,094,676)

Cash Flows from Investing Activities Sale of investments 10,500,000 14,500,000 17,022,553 Purchase of investments (8,797,084) (10,000,000) (10,511,704) Purchase of property, plant & equipment (39,628) (80,000) (55,292) Sale of property, plant & equipment 0 0 0 Purchase of intangible assets 0 0 (27,007) Net Cash from Investing Activities 1,663,288 4,420,000 6,428,550

Cash Flows from Financing Activities Short term loans issued (1,961,000) (871,000) (1,429,950)

Short term loans repaid 294,814 510,000 160,397 25 Net Cash from Financing Activities (1,666,186) (361,000) (1,269,553)

Net increase / (decrease) in cash at bank (4,642,903) 0 1,064,321 Cash and cash equivalents at the start of the year 7,430,312 3,500,000 6,365,991 Closing cash and cash equivalents at year end 2,787,409 3,500,000 7,430,312

The GST (net) component of operating activities reflects the net GST paid to and received by the Inland Revenue Department. The GST (net) component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes.

The accompanying notes on pages 26 to 47 form part of these financial statements. Notes to the Financial Statements For the year ended 30 June 2012

1. stATEMENT OF ACCOUNTING POLICIES Changes in accounting policies FOR THE YEAR ENDED 30 JUNE 2012 There have been no changes in accounting policies during the financial year. REPORTING ENTITY Standards, amendments and interpretations issued that are not yet Pursuant to the New Zealand Film Commission Act 1978, the effective and have not been early adopted New Zealand Film Commission (the NZFC) was established on 13 November 1978 as a Crown Entity in terms of the Crown Standards, amendments and interpretations issued that are Entities Act 2004. not yet effective and have not been early adopted, and which are relevant to the NZFC are: These are the NZFC’s financial statements. They are prepared subject to the New Zealand Film Commission Act 1978 and the • NZ IFRS 9 Financial Instruments will eventually replace Crown Entities Act 2004. NZ IAS 39 Financial Instruments: Recognition and Measurement. NZ IAS39 is being replaced through the following 3 main The primary objective of the NZFC is to encourage and also phases: Phase 1 Classification and Measurement, Phase 2 participate and assist in the making, promotion and exhibition of Impairment Methodology, and Phase 3 Hedge Accounting. films. It has been established exclusively for charitable purposes Phase 1 on the classification and measurement of financial in New Zealand. Accordingly, the NZFC has designated itself as instruments has been completed and has been published in a public benefit entity for the purposes of NZ equivalents to IFRS the new financial instrument standard NZ IFRS 9. NZ IFRS 9 uses a single approach to determine whether a financial asset (NZ IFRS). is measured at amortised cost or fair value, replacing the The financial statements of the NZFC are for the year ended many different rules in NZ IAS 39. The approach in NZ IFRS 30 June 2012. The financial statements were authorised for issue 9 is based on how an entity manages its financial assets (its on 31 October 2012. business model) and the contractual cash flow characteristics of the financial assets. The financial liability requirements BASIS OF PREPARATION are the same as those of NZ IAS 39, except for when an entity elects to designate a financial liability at fair value through the Statement of compliance surplus/deficit. The new standard is required to be adopted for The financial statements of the NZFC have been prepared in the year ended 30 June 2016. However, as a new Accounting accordance with the requirements of the Crown Entities Act 2004, Standards Framework will apply before this date, there is no certainty when an equivalent standard to NZ IFRS 9 will be which includes the requirement to comply with New Zealand applied by public benefit entities. generally accepted accounting practice (NZ GAAP). The Minister of Commerce has approved a new Accounting 26 They comply with NZ IFRS, and other applicable Financial Standards Framework (incorporating a Tier Strategy) developed Reporting Standards, as appropriate for public benefit entities. by the External Reporting Board (XRB). Under this Accounting The accounting policies set out below have been applied Standards Framework, the NZFC is classified as a Tier 1 consistently to all periods presented in these financial reporting entity and it will be required to apply full Public Benefit statements. Entity Accounting Standards (PAS). These standards are being developed by the XRB based on current International Public Measurement base Sector Accounting Standards. The effective date for the new The financial statements have been prepared on a historical standards for public sector entities is expected to be for reporting cost basis, except the measurement of portfolio investments periods beginning on or after 1 July 2014. This means that the at fair value. NZFC expects to transition to the new standards in preparing its 30 June 2015 financial statements. As the PAS are still under Functional and presentation currency development, the NZFC is unable to assess the implications of The financial statements are presented in New Zealand dollars the new Accounting Standards Framework at this time. and all values are rounded to the nearest dollar. The functional Due to the change in the Accounting Standards Framework for currency of the NZFC is New Zealand dollars (NZ$). public benefit entities, it is expected that all new NZ IFRS and Foreign currency transactions are translated into NZ$ (the amendments to existing NZ IFRS will not be applicable to public functional currency) using the exchange rates prevailing at the benefit entities. Therefore the XRB has effectively frozen the dates of the transactions. Foreign exchange gains and losses financial reporting requirements for public benefit entities up resulting from the settlement of such transactions and from the until the new Accounting Standards Framework is effective. translation at year end exchange rates of monetary assets and Accordingly, no disclosure has been made about new or amended liabilities denominated in foreign currencies are recognised in NZ IFRS that exclude public benefit entities from their scope. the statement of comprehensive income. New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand SIGNIFICANT ACCOUNTING POLICIES Financial instruments are initially recognised at fair value plus transaction cost. Subsequent measurement of Revenue financial instruments depends on the classification of the Revenue is measured at the fair value of considerations received financial instrument. or receivable. Cash and cash equivalents Crown Revenue

Cash and cash equivalents includes cash on hand, deposits held New Zealand Film Commission Annual Report Two Thousand and Twelve The NZFC is primarily funded through revenue received from the at call with banks, and other short-term highly liquid investments Crown, which is restricted in its use for the purpose of the NZFC with original maturities of three months or less. meeting its objectives as specified in the Statement of Intent. Any bank deposits held in foreign currencies at balance date Revenue from the Crown is recognised as revenue when earned are valued at the quoted mid-rate at the close of business on 30 and is reported in the financial period to which it relates. June. The unrealised gain or loss resulting from the valuation is Other grants recognised in the statement of comprehensive income.

Non-government grants are recognised as revenue when they Trade and other receivables become receivable. Trade and other receivables are recorded at their face value, less Interest any provision for impairment.

Interest income is recognised using the effective interest method. Impairment of a receivable is established on a case by case Interest income on an impaired financial asset is recognised basis, when there is objective evidence that the NZFC will not using the original effective interest rate. be able to collect amounts due according to the original terms of the receivable. Returns from film investments Significant financial difficulties of the debtor, probability that the Returns from film investments are recognised as revenue when debtor will enter into bankruptcy, and default in payments are either a sales contract is executed or in the case of film royalty considered indicators that the debtor is impaired. The carrying "overages", when the royalties have been reported and become amount of the asset is reversed and written off against the unpaid receivable. invoices account in the Film Income Account. Overdue invoices Grant expenditure that have been renegotiated are reclassified as current (i.e. not past due). Non-discretionary grants are those grants awarded if the grant application meets the specified criteria and are recognised as STAR loans 27 expenditure when an application that meets the specified criteria Short Term Assured Repayment (STAR) loans are initially for the grant has been received. recognised at their face value. They are subsequently measured Discretionary grants are those grants where the NZFC has at amortised cost using the effective interest method. The no obligation to award on receipt of the grant application and difference between the face value and present value of expected are recognised as expenditure when the approval has been future cash flows of the loan is recognised in the statement of communicated to the applicant. comprehensive income. Leases Prepayments

Operating leases Expenses for future film markets and festivals incurred in the current year are shown as prepayments. An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset. Investments and advances Lease payments under an operating lease are recognised as an Funding for film development and production expense on a straight-line basis over the lease term. Funding for film development and production, while in the Financial instruments nature of an investment, is treated as expenditure because of its The NZFC is party to financial instruments as part of its normal high-risk nature. This expenditure is recognised at the time the operations. Financial instruments include: commitment is approved and includes funds committed but not paid out at year-end. The exceptions to this policy are: • financial assets - cash and cash equivalents, investments and trade and other receivables (i) investments for which a certain level of income is contracted and reasonably assured. Such investments are treated as • financial liabilities – trade and other payables assets and valued at the minimum level of expected income Purchases and sales of financial assets are recognised on the date when the NZFC becomes party to a financial contract. Financial assets are derecognised when the right to receive cash flows from the financial assets have expired. (ii) short term advances made on a fully recourse basis The costs of day-to-day servicing of property, plant where the payment is secured by some means so as to and equipment are recognised in the surplus or deficit as give a reasonable expectation of repayment. they are incurred.

Bank deposits Depreciation

Investments in bank deposits are initially measured at fair value Depreciation is provided on a straight-line basis on all property, plus transaction costs. plant and equipment at rates that will write off the cost of the assets to their estimated residual values over their useful lives. After initial recognition investments in bank deposits are The useful lives and associated depreciation rates of major measured at amortised cost using the effective interest method, classes of assets have been estimated as follows: less any provision for impairment. Computer Hardware 3 years 33.33% For bank deposits, impairment is established when there is objective evidence that the NZFC will not be able to collect Furniture and Fittings 7 years 14.29% amounts due according to the original term of the deposit. Office Equipment 5 years 20.00% Significant financial difficulties of the bank, probability that the bank will enter into receivership or liquidation, and default in Leasehold Alterations 9 years 11.11% payments are considered indicators that the deposit is impaired. Leasehold alterations are depreciated over the unexpired period Investments of the lease or the estimated remaining useful lives of the alteration, whichever is the shorter. The NZFC designates portfolio investments at fair value through surplus and deficit, which are initially measured at fair value plus The residual value and useful life of an asset is reviewed, and transaction costs. adjusted if applicable, at each financial year-end. After initial recognition, these investments are measured at their Intangible assets fair value with gains and losses, including impairment losses, Software acquisition and development recognised in the surplus or deficit. Acquired computer software licences are capitalised on the basis A significant or prolonged decline in the fair value of the of the costs incurred to acquire and bring to use the specific investment below its cost is considered objective evidence of software. impairment. If impairment evidence exists, the cumulative loss (measured as the difference between the acquisition cost Costs that are directly associated with the development of and the current fair value, less any impairment loss on that software for internal use by the NZFC, are recognised as an financial asset previously recognised in the surplus or deficit) is 28 intangible asset. Direct costs include the software development, recognised in the surplus or deficit. employee costs and an appropriate portion of relevant overheads.

Property, plant & equipment Staff training costs are recognised as an expense when incurred.

Property, plant & equipment consists of the following asset Costs associated with maintaining computer software are classes: leasehold alterations, computer hardware, office recognised as an expense when incurred. equipment and furniture and fittings. All classes are measured at cost, less accumulated depreciation and impairment losses. Costs associated with the development and maintenance of the NZFC's website are recognised as an expense when incurred. Additions Amortisation The cost of an item of property, plant and equipment is recognised as an asset if it is probable that future economic The carrying value of an intangible asset with a finite life benefits associated with the item will flow to the NZFC and the is amortised on a straight-line basis over its useful life. cost of the item can be measured reliably. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. Disposals The amortisation charge for each period is recognised in the surplus or deficit. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses The useful lives and associated amortisation rates of major on disposals are reported net in the surplus or deficit. classes of intangible assets have been estimated as follows:

Subsequent costs Computer software 3 years 33.33% Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to the NZFC and the

New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand cost of the item can be measured reliably. Impairment of property, plant and equipment Project commitments and intangible assets This amount represents financial commitments and advances for Property, plant and equipment and intangible assets that have film development and production committed by the NZFC, but not a finite useful life are reviewed for impairment whenever events paid out at year-end. or changes in circumstances indicate that the carrying amount Writebacks may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its Writebacks represent commitments for investments and recoverable amount. The recoverable amount is the higher of an advances treated as expenditure in previous years and New Zealand Film Commission Annual Report Two Thousand and Twelve asset’s fair value less costs to sell and value in use. subsequently revised or cancelled and therefore written back to the current year's income. Value in use is the depreciated replacement cost for an asset where the future economic benefits or service potential of Goods and services tax (GST) the asset are not primarily dependent on the asset’s ability to All items in the financial statements are presented exclusive generate net cash inflows and where the NZFC would, if deprived of goods and services tax (GST), except for receivables and of the asset, replace its remaining future economic benefits or payables, which are presented on a GST-inclusive basis. Where service potential. GST is not recoverable as an input tax, then it is recognised as If an asset’s carrying amount exceeds its recoverable amount, part of the related asset or expense. the asset is impaired and the carrying amount is written-down to The net amount of GST recoverable from, or payable to the Inland the recoverable amount. Revenue Department (IRD) is included as part of receivables or For assets not carried at a revalued amount, the total impairment payables in the statement of financial position. loss is recognised in the surplus or deficit. The net GST paid to, or received from the IRD, including the GST Trade and other payables relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows. Trade and other payables are recorded at their face value. Employee entitlements Commitments and contingencies are disclosed exclusive of GST. Income tax Employee benefits that are due to be settled within 12 months after the end of the period in which the employee renders the The NZFC is exempt from income tax in accordance with Section related service are measured based on accrued entitlements at 29 of the New Zealand Film Commission Act 1978. Accordingly no current rates of pay. These include salaries and wages accrued provision has been made for income tax. up to balance date, annual leave earned to but not yet taken at Budget figures balance date, and sick leave. 29 The budget figures are those approved by the Board at the The liability for sick leave is recognised to the extent that beginning of the financial year and are reported in the Statement absences in the coming year are expected to be greater than the of Intent (SOI). sick leave entitlement earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be The budget figures have been prepared in accordance with NZ carried forward at balance date, to the extent that it will be used GAAP and are consistent with the accounting policies adopted by by staff to cover those future absences. the NZFC for the preparation of the financial statements.

The NZFC recognises a liability and an expense for bonuses The Statement of Intent (SOI) has multiple line items that are where contractually obliged or where there is a past practice that condensed on the face of the financial statements. has created a constructive obligation.

Presentation of employee entitlements

Salaries and wages, annual leave, sick leave and bonuses are classified as a current liability. Superannuation schemes

Obligations for contributions to Kiwisaver are accounted for as a defined contribution superannuation scheme and are recognised as an expense in the surplus or deficit as incurred. Statement of Intent (SOI) line items: Estimating useful lives and residual values of property, plant and equipment 2011/12 $000 At each balance date the NZFC reviews the useful lives and Production residual values of its property, plant and equipment. Assessing Short Films 1,025 the appropriateness of useful life and residual value estimates of property, plant and equipment requires the NZFC to consider a NZFC Features 8,060 number of factors such as the physical condition of the asset and SPIF - NZFC Co-invest 2,000 expected period of use of the asset by the NZFC.

Escalator Features 1,250 An incorrect estimate of the useful lives and residual values will Other Production Costs 115 affect the depreciation expense recognised in the surplus or deficit, and the carrying amount of the asset in the statement of Total Production 12,450 financial position. The NZFC minimises the risk of this estimation uncertainty by: Marketing and Sales • physical inspection of the asset Domestic - Distribution Initiatives 652 • asset replacement programmes. International - Sales/Marketing 733 The NZFC has not made significant changes to past assumptions concerning useful lives and residual values. Total Marketing and Sales 1,385 Film income account

Note 10 provides an explanation in relation to estimates and Corporate uncertainties surrounding the Film Income Account Liability. Administration 1,226 Depreciation 180 2. REVENUE FROM THE CROWN Total Corporate 1,406 The NZFC has been provided with funding from the Crown for specific purposes as set out in its founding legislation and the scope of the relevant government appropriations. Apart from Cost allocations these general restrictions, there are no unfulfilled conditions or The NZFC has determined the cost of outputs using the cost contingencies attached to government funding (2011 = $Nil). allocation system outlined below. 30 Direct costs are those costs directly attributed to an output. Indirect costs are those costs that cannot be identified in an economically feasible manner with a specific output.

Direct costs are charged directly to outputs. Indirect costs are allocated to outputs based on each output’s share of the total direct costs, with the exception of Short Film Consultants (from Personnel Costs) which are attributed to the relevant output in full.

There have been no changes to the cost allocation methodology since the date of the last audited financial statements. Critical judgements in applying the NZFC's accounting policies and critical accounting estimates and assumptions

In preparing these financial statements the NZFC has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material

New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: 3. CASH AND CASH EQUIVALENTS

2012 2011 $ $

Cash at bank and on hand 1,436,795 7,430,312

Cash held through investment portfolio 350,614 0 New Zealand Film Commission Annual Report Two Thousand and Twelve Term deposits with maturities of 3 months or less 1,000,000 0 2,787,409 7,430,312

The carrying value of cash at bank and short term deposits with maturities of three months or less approximates their fair value.

4. INVESTMENTS

2012 2011 $ $ Current portion Term deposits with maturities of 4-12 months 2,500,000 9,000,000 Term deposits with maturities of 4-12 months held through investment portfolio 625,000 0 Portfolio investments 228,808 0 Total current portion 3,353,808 9,000,000

Non-current portion Portfolio investments 3,943,276 0 Total non-current portion 3,943,276 0 31

7,297,084 9,000,000

There were no impairment provisions for investments.

Portfolio investments are measured at fair value with fair value determinded by reference to published bid price quotations in an active market. 5. TRADE AND OTHER RECEIVABLES

2012 2011 $ $

Trade debtors 3,237,482 372,174 Net GST receivable 534,763 39,194 Prepayments 113,555 31,102 Star loans 3,085,515 1,459,329 Less: bad debt written off 0 (40,000) Less: provision for impairment (28,613) (94,001) 6,942,702 1,767,798

The carrying value of receivables approximates their fair value.

The ageing profile of receivables at year end is detailed below:

2012 2011 Gross Impairment Net Gross Impairment Net $ $ $ $ $ $

Current 6,697,276 0 6,697,276 1,700,634 (40,000) 1,660,634 Past due 31-60 days 99,379 0 99,379 65,837 0 65,837 Past due 61-90 days 56,275 0 56,275 2,714 0 2,714 Past due >91 days 118,385 (28,613) 89,772 132,614 (94,001) 38,613 32 6,971,315 (28,613) 6,942,702 1,901,799 (134,001) 1,767,798

All receivables greater than 30 days in age are considered to be past due.

The provision for impairment has been calculated based on expected losses for the NZFC's pool of debtors. Expected losses have been determined based on the review of specific debtors. Those specific debtors that are insolvent are fully provided for.

Movements in the provision for impairment of receivables are as follows:

2012 2011 $ $

Balance at 1 July (94,001) (47,420) Additional provisions made during the year (28,613) (46,581) Receivables paid 11,008 0 Receivables written off against provision 82,993 0 Balance 30 June (28,613) (94,001)

The NZFC holds no collateral as security or other credit enhancements over receivables that are either past due or impaired. New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand 6. PROPERTY, PLANT AND EQUIPMENT

Movements for each class of property, plant and equipment are as follows:

Computer Leasehold Equipment Office Furniture Alterations - Hardware Equipment & Fittings Total

$ $ $ $ $ New Zealand Film Commission Annual Report Two Thousand and Twelve

Cost or Valuation Balance at 1 July 2010 495,630 276,467 146,035 347,776 1,265,908 Additions 0 55,292 0 55,292 Reclassification of assets 0 0 0 0 0 Disposals 0 (42,802) (8,340) 0 (51,142) Balance at 30 June 2011 495,630 288,957 137,695 347,776 1,270,058

Balance at 1 July 2011 495,630 288,957 137,695 347,776 1,270,058 Additions 0 24,372 9,793 5,463 39,628 Reclassification of assets 0 0 0 0 0 Disposals 0 (15,994) (6,894) (38,917) (61,805) Balance at 30 June 2012 495,630 297,335 140,594 314,322 1,247,881

Accumulated Depreciation Balance at 1 July 2010 164,650 226,311 93,399 201,151 685,511 Reclassification of assets 0 0 0 0 0 Depreciaton expense 55,064 35,601 21,491 37,238 149,394 33 Eliminate on disposal 0 (41,154) (8,265) 0 (49,419) Balance at 30 June 2011 219,714 220,758 106,625 238,389 785,486

Balance at 1 July 2011 219,714 220,758 106,625 238,389 785,486 Reclassification of assets 0 0 0 0 0 Depreciation expense 55,065 37,773 21,103 36,533 150,474 Eliminate on disposal 0 (15,795) (6,894) (38,712) (61,401) Balance at 30 June 2012 274,779 242,736 120,834 236,210 874,559

Carrying amounts As at 30 June and 1 July 2010 330,980 50,156 52,636 146,625 580,397 As at 30 June and 1 July 2011 275,916 68,199 31,070 109,387 484,572 As at 30 June 2012 220,851 54,599 19,760 78,112 373,322

There are no restrictions over the title of the NZFC's property, plant and equipment, nor are any items of property, plant and equipment pledged as security for liabilities.

Based on our annual review of the useful life of the NZFC's property, plant and equipment, we have assessed that there is no indication of impairment. 7. INTANGIBLE ASSETS

Movements for intangible assets are as follows:

Computer Equipment - Acquired Software $

Cost or Valuation Balance at 1 July 2010 416,642 Additions 27,007 Disposals (27,202) Balance at 30 June 2011 416,447

Balance at 1 July 2011 416,447 Additions 0 Disposals 0 Balance at 30 June 2012 416,447

Accumulated Amortisation Balance at 1 July 2010 365,734 Amortisation expense 27,238 Eliminate on disposal (27,202) 34 Balance at 30 June 2011 365,770

Balance at 1 July 2011 365,770 Amortisation expense 25,957 Eliminate on disposal 0 Balance at 30 June 2012 391,727

Carrying amounts As at 30 June and 1 July 2010 50,908 As at 30 June and 1 July 2011 50,677 As at 30 June 2012 24,720

There are no restrictions over the title of the NZFC's intangible assets, nor are any intangible assets pledged as security for liabilities

Based on our annual review of the useful life of the NZFC's intangible assets, we have assessed that there is no indication of impairment. New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand 8. TRADE AND OTHER PAYABLES

2012 2011 $ $

Trade creditors 987,946 1,064,079

Sundry accruals 274,920 254,836 New Zealand Film Commission Annual Report Two Thousand and Twelve PAYE 200 1,320 1,263,066 1,320,235

Trade and other payables are non-interest bearing and are normally settled on 30-day terms, therefore the carrying value of trade and other payables approximates their fair value.

9. EMPLOYEE ENTITLEMENTS

2012 2011 $ $

Accrued salaries and wages 57,961 49,950 Annual leave 107,560 67,482 165,521 117,432

35 10. FILM INCOME ACCOUNT

The film income account is used to collect and distribute to investors film proceeds received by the NZFC in its role as sales agent and / or trustee of certain films. The balance at 30 June represents film income receivable or collected but not yet distributed and unpaid film sales invoices.

2012 2011 $ $

Opening balance 1 July 308,509 205,751 Income from sales 2,071,613 2,968,239

Total film income 2,380,122 3,173,990

Less: NZFC distribution fees (220,568) (417,506) Less: marketing & other expenses (234,234) (226,634)

Net Earnings 1,925,320 2,529,850

Less: distributed to investors [950,493] (1,556,488) Less: distributed to NZFC (484,593) (564,213) Less: loan repayment to NZFC (193,105) (60,397)

297,129 348,752 36

Provision for unrecouped expenses increase/(decrease) 557 (66,501)

Balance 30 June 297,686 282,251

Unpaid invoices increase / (decrease) (7,486) 26,258

Balance (including unpaid invoices) 290,200 308,509

The preparation of the film income account in conformity with NZ IFRS requires judgements, estimates and assumptions, which are based on historical experience. The estimates and underlying assumptions are reviewed on an ongoing basis.

Revisions to accounting estimates are recognised in the period in which the estimates are revised. New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand 11. PROJECT COMMITMENTS

2012 2011 $ $

Feature films 4,538,913 5,360,160

Short films 1,158,382 1,090,320 New Zealand Film Commission Annual Report Two Thousand and Twelve Devolved development and producer overhead funds 60,000 110,000 5,757,295 6,560,480

Project commitments represent commitments for investments and advances for film development and production committed by the NZFC, but not paid out at year end.

12. DEVELOPMENT

2012 2011 $ $

Feature films - development 871,027 1,632,940 Creative development 538,844 545,724 External services 19,654 23,434 1,429,525 2,202,098

13. PRODUCTION 37

2012 2011 $ $

Feature films - production financing 11,650,450 12,238,056 Short films - production financing 1,084,999 1,154,910 Other costs 42,634 66,329 Bad debt written off 0 40,000 12,778,083 13,499,295

Feature film production financing costs are shown at gross cost in this note, including the NZFC's SPIF co-investment.

14. FESTIVAL AND INDUSTRY SUPPORT

2012 2011 $ $

Festivals and awards 170,000 215,500 Industry support 537,500 570,500 707,500 786,000 15. MARKETING AND SALES

2012 2011 $ $

Domestic/Media distribution 494,462 579,387 International marketing 394,948 217,028 Market attendance 85,023 118,776 Sales agency - features 181,627 113,194 Sales agency - shorts 31,421 41,417 1,187,481 1,069,802

International marketing costs include a $210,000 NZFC contribution to MCH for the 2012 Frankfurt Book Fair.

16. CORPORATE

2012 2011 $ $

Board costs 167,813 173,454 Communications 173,028 68,819 Office overheads 117,200 150,973 Depreciation and amortisation expense: Leasehold alterations 55,065 55,064 38 Computer equipment - hardware 37,773 35,601 Computer equipment - software 25,957 27,238 Office equipment 21,103 21,491 Furniture & fittings 36,533 37,238 Rent 270,537 271,420 Audit fees for the audit of the financial statements 41,902 40,039 Other costs 347,090 428,130 1,294,001 1,309,467

17. PERSONNEL COSTS

2012 2011 $ $

Development 362,107 342,784 Sales and marketing 436,083 394,616 New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand Corporate 961,152 921,961 Consultants 111,961 128,452 1,871,303 1,787,813 18. GOVERNMENT SPIF GRANT

Although the NZFC is not directly responsible for the SPIF scheme it is the entity that administers it and ensures grants are paid on time to the productions eligible.

Funds requested from MCH and paid on to productions were:

2012 2011 $ $ New Zealand Film Commission Annual Report Two Thousand and Twelve

Feature films 2,427,139 12,656,793 TV series 2,510,419 3,040,541 4,937,558 15,697,334

19. CAPITAL COMMITMENTS AND OPERATING LEASES

The NZFC had no capital commitments as at 30 June 2012 (2011=$Nil).

Operating leases as a lessee The future aggregate minimum lease payments to be paid under non-cancellable operating leases are as follows:

2012 2011 $ $

Not later than one year 218,138 218,138 Between one and two years 218,138 218,138 Between two and five years 654,414 0 Later than five years 436,276 0 39 1,526,966 436,276

The NZFC leases two floors of an office building. The lease expires on 2 July 2019, with an option to vacate the premises at the renewal dates of 2 July 2013 and 2 July 2016.

The NZFC is assuming it will not vacate the premises at the lease renewal date of 2 July 2013. The NZFC does not have an option to purchase the asset at the end of the lease term.

20. CONTINGENCIES Contingent liabilities

There were no contingent liabilities at balance date (2011=$Nil). Contingent assets

There were no contingent assets at balance date (2011=$Nil). 21. FINANCIAL INSTRUMENTS 21A. Financial Instrument Categories

The carrying amounts of financial assets and financial liabilities in each of the NZ IAS 39 categories are as follows:

2012 2011 $ $ Loans and receivables Cash and cash equivalents 2,787,409 7,430,312 Investments 3,125,000 9,000,000 Trade and other receivables 6,942,702 1,767,798 Total loans and receivables 12,855,111 18,198,110

Financial Assets at fair value through surplus and deficit Investments - portfolio investments 4,172,084 0

Financial liabilities Trade and other payables 1,263,066 1,320,235 Film income account 290,200 308,509 Project commitments 5,757,295 6,560,480 Total financial liabilities 7,310,561 8,189,224

21B. Fair Value Hierarchy

The carrying amounts of financial instruments included in the statement of financial position reflect the fair values of the financial instruments at balance date. The fair values are determined according to the following hierarchy: 40 • Quoted market prices (level 1) - Financial instruments with quoted prices for identical instruments in active markets. • Valuation techniques using observable inputs (level 2) - Financial instruments with quoted prices for identical instruments in active markets or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable. • Valuation techniques with significant non-observable inputs (level 3) - Financial instruments valued using models where one or more significant inputs are not observable. The following table analyses the basis of the valuation of classes of financial instruments measured at fair value in the statement of financial position:

Significant Quoted Observable non-observable Total market price inputs inputs $ $ $ $

30 June 2011 Portfolio investments 0 0 0 0

30 June 2012 Portfolio investments 4,172,084 4,172,084 0 0 New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand 21C. Financial Instrument Risks In addition if the NZFC has reasonable assurance that a foreign exchange debtor will pay on a due date and if the sum is material The NZFC's activities expose it to a variety of financial instrument then the NZFC will use a foreign currency contract to manage the risks, including market risk, credit risk and liquidity risk. The foreign currency exposure. NZFC has a series of policies to manage the risks associated with financial instruments and seeks to minimise exposure The forward exchange contracts outstanding at 30 June 2012 from financial instruments. These policies do not allow any amounted to $Nil (2011=$Nil). transactions that are speculative in nature to be entered into.

Credit risk New Zealand Film Commission Annual Report Two Thousand and Twelve Market risk Credit risk is the risk that a third party will default on its Fair value interest rate risk obligation to the NZFC, causing the NZFC to incur a loss.

Fair value interest rate risk is the risk that the value of a financial In the normal course of business the NZFC is exposed to credit instrument will fluctuate, or the cash flows from a financial risk from cash and term deposits with banks, debtors and other instrument will fluctuate, due to changes in market interest rates. receivables. For each of these, the maximum credit exposure is best represented by the carrying amount in the statement The NZFC's exposure to fair value interest rate risk is limited to of financial position. its bank deposits which are held at fixed rates of interest. Due to the timing of its cash inflows and outflows, the NZFC The NZFC does not actively manage its exposure to fair value invests surplus cash with registered banks that have a Standard interest rate risk. and Poor's credit rating of at least A2 for short term and A- for Cash flow interest rate risk long-term investments. The NZFC has experienced no defaults of interest or principal payments for term deposits. Cash flow interest rate risk is the risk that the cash flows from a financial instrument will fluctuate because of changes in market These banks are: Kiwi Bank, ASB, BNZ, Rabobank and The interest rates. Investments issued at variable interest rates National Bank of New Zealand. expose the NZFC to cash flow interest rate risk. The NZFC's Investment policy limits the amount of credit The NZFC's investment policy requires a spread of exposure to any one institution to no more than 35% of total investment maturity dates to limit exposure to short-term investments held. interest rate movements. The NZFC's maximum credit exposure for each class of financial The NZFC currently has no variable interest rate investments. instrument is represented by the total carrying amount of cash and cash equivalents (Note 3), short term deposits (Note 4) and Sensitivity Analysis trade debtors (Note 5). 41 If during the year interest rates had been 100 basis points higher There are no major concentrations of credit risk with respect to or lower, with all other variables held constant, the surplus/deficit trade debtors and exposure to them is monitored on a regular would have been $109,678 higher/lower (2011=$184,433). basis. The NZFC does not require any collateral or security to This movement is attributable to the amount of term deposits support financial instruments due to the quality of the financial directly managed by the NZFC at any one time during the year institutions dealt with. and the interest rate on these deposits. It excludes term deposits The NZFC does not have any significant credit risk exposure to a and investments held through the portfolio. single counterparty or any group of counterparties having similar Currency risk characteristics due to the large number of customers included in the NZFC’s customer base. Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in As at 30 June 2012 the NZFC had a Credit Limit of $91,000 foreign exchange rates. (2011=$70,000) over the combined company credit cards

The NZFC purchases goods and services overseas which require Credit quality of financial assets it to enter into transactions denominated in foreign currencies. The credit quality of financial assets that are neither past due nor During the year the NZFC also held a small balance of EUR with impaired can be assessed by reference to Standard and Poor's an international bank in order to settle transactions denominated credit ratings (if available) or to historical information about in EUR when logistically necessary. As a result of these activities, counterparty default rates: exposure to currency risk arises. 21C. Financial Instrument Risks (continued)

2012 2011 $ $

COUNTERPARTIES WITH CREDIT RATINGS Cash at bank and term deposits AAA 0 2,561,920 AA 1,502,246 10,360,719 AA- 4,410,164 3,500,000 A-1 0 7,673 Total cash at bank and term deposits 5,912,410 16,430,312

COUNTERPARTIES WITHOUT CREDIT RATINGS Debtors and other receivables Existing counterparty with no defaults in the past 6,942,702 1,767,798 Existing counterparty with defaults in the past 0 0 Total debtors and other receivables 6,942,702 1,767,798

Liquidity risk Liquidity risk is the risk that the NZFC will encounter difficulty raising liquid funds to meet commitments as they fall due.

In meeting its liquidity requirements the NZFC closely monitors its forecast cash requirements with expected cash drawdowns for film productions and ensures that term investments mature in time to meet any obligations. In addition the NZFC maintains a target level of available cash to meet liquidity requirements.

Contractual maturity analysis of financial liabilities

The table below analyses the NZFC's financial liabilities into relevant maturity groupings based on the remaining period at balance date 42 to the contractual maturity date. The amounts disclosed are the contractual undiscounted cashflows.

Carrying Contractual Less than 6 6 months more than amount cashflows months - 1 year 1 year $ $ $ $ $ 2011 Trade and other payables 1,320,235 1,320,235 1,320,235 0 0

2012 Trade and other payables 1,263,066 1,263,066 1,263,066 0 0

22. CAPITAL MANAGEMENT

The NZFC's capital is its equity, which is accumulated funds. Equity is represented by net assets.

The NZFC is subject to the financial management and accountability provisions of the Crown Entities Act 2004, which impose restrictions in relation to borrowings, acquisition of securities, issuing guarantees and indemnities and the use of derivatives.

The NZFC manages its equity as a by-product of prudently managing revenues, expenses, assets, liabilities, investments, and general financial dealings to ensure the NZFC effectively achieves its objectives and purpose, whilst remaining a going concern. New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand 23. RELATED PARTY TRANSACTIONS AND KEY • The NZFC purchased goods totalling $414 from Urban Harvest Ltd, of which NZFC's Chair Patsy Reddy is a shareholder. MANAGEMENT PERSONNEL No such purchases were made in the previous year. All related party transactions have been entered into on an arm's The balance still payable to Urban Harvest Ltd as at 30 June length basis. 2012 is $Nil (2011=$Nil).

The NZFC is a wholly owned entity of the Crown. • The NZFC is investor in and sales agent for the feature film ""Billy T James: Te Movie"" which is distributed by Sony

Significant transactions with government-related entities Pictures (NZ) Ltd. Andrew Cornwell, member of the NZFC New Zealand Film Commission Annual Report Two Thousand and Twelve Board, is also a director of Sony Pictures (NZ) Ltd. The NZFC has been provided with funding from the Crown of $5.401M (2011=$5.671M) for specific purposes The NZFC purchased film materials and provided a publicity as set out in its legislation and the scope of the relevant grant to Sony Pictures (NZ) Ltd totalling $68,803 (2011=$Nil). government appropriations. The balance still payable to Sony Pictures (NZ) Ltd as at 30 June 2012 is $30,773 (2011=$Nil). The Lottery Grants Board has provided the NZFC with funding In addition, Sony hired film prints from and distributed film of $11.924M (2011=$12.046M). income to the NZFC totalling $44,725 (2011=$6,414). In addition the NZFC has received $4.937M The balance still receivable from Sony Pictures (NZ) Ltd as at (2011=$15.697M) from the Crown for the SPIF scheme, 30 June 2012 is $6,414 (2011=$6,414). which the NZFC administers. This was paid on by the NZFC to the • The NZFC purchased goods and services from Park Road Post qualifying film and television productions. totalling $328,925 (2011=$396,682). Collectively, but not individually, significant transactions with Board member Cameron Harland is the general manager of government-related entities Park Road Post. In conducting its activities, the NZFC is required to pay various The balance still payable to Park Road Post as at 30 June 2012 taxes and levies (such as GST, PAYE and ACC levies) to the Crown is $Nil (2011=$4,893). and entities related to the Crown. The payment of these taxes and • The NZFC paid $44,480 in industry support and training to the levies is based on the standard terms and conditions that apply Film New Zealand Trust (FNZ) (2011=$41,853). to all tax and levy payers. The NZFC is exempt from paying In addition FNZ paid $1,291 to the NZFC for re-imbursement income tax. of costs incurred on FNZ's behalf (2011=$470). The NZFC also entered into transactions with entities controlled, The NZFC's CEO Graeme Mason was a board member significantly influenced, or jointly controlled by the Crown. of FNZ during the year under review and the previous year. Transactions with these government-related entities for the year The balance still payable to/receivable from FNZ as at 43 ended 30 June 2012 totalled $553,352 excl. GST (2011=$302,346 30 June 2012 is $Nil (2011=$Nil). excl. GST). • In 2012 the NZFC paid $1,200 (2011=$880) to Wendy Palmer for These transactions included the purchase of electricity from script assessments. Wendy Palmer is the sister of the NZFC's Genesis, air travel from Air New Zealand, postal services from CEO's partner. The balance still payable as at 30 June 2012 is New Zealand Post and distribution of film income to NZ On Air $Nil (2011=$Nil). and TVNZ. • The NZFC paid $81 (2011=$Nil) to the Film & Television School for cinema hireage. Naomi Wallwork, the NZFC's Head of The balance still payable to these entities as at 30 June 2012 Business Affairs is a Trustee of the School. The balance still is $74,601 (2011=$64,196). payable as at 30 June 2012 is $Nil (2011=$Nil). Key Management Personnel • The NZFC currrently has two projects in its pool of projects under development, which are screenplay adaptations of The following transactions (excl. GST) were entered into during novels written by current board member Witi Ihimaera. Both the year with key management personnel: projects first applied to the NZFC prior to Witi Ihimaera's • The NZFC distributed $207,070 of film income to the appointment to the board. One of the projects has not received New Zealand Film Production Fund Trust (Film Fund) in its any funding during the year under review (2011=$Nil). capacity as investor (2011=$581,896). The Chair of the Film The second project has received development funding of Fund, Sir David Gascoigne, is the husband of the NZFC's Chair $22,000 in 2012 (2011=$Nil). Patsy Reddy. • The NZFC committed feature film financing of $2M to a project The balance still payable to the Film Fund as at 30 June 2012 which is produced by board member Chris Hampson and is is $42,152 (2011=$159,086). based on a novel by board member Witi Ihimaera. This project has not received funding in previous years. The balance still In addition the Film Fund paid $10,044 to the NZFC for payable as at 30 June 2012 is $260,000 (2011=$Nil). providing administration services to the Film Fund (2011=$350,933 as reimbursement of funds paid by the No provision has been required nor any expense recognised for NZFC on the Film Fund's behalf). impairment of receivables from related parties (2011=$Nil).

The balance still receivable from the Film Fund as at 30 June 2012 is $5,044 (2011=$Nil). 23. RELATED PARTY TRANSACTIONS AND KEY MANAGEMENT PERSONNEL (continued)

Key Management Personnel Compensation

2012 2011 $ $

Salaries and other short-term employee benefits 785,747 890,931 Post-employment benefits (Kiwisaver) 12,995 12,703 Other long-term benefits 0 0 Termination benefits 0 0 798,742 903,634

Key management personnel includes all board members, the Chief Executive, Deputy Chief Executive, Head of Business Affairs and the Head of Sales and Marketing.

24. BOARD MEMBER REMUNERATION

The total value of remuneration paid or payable to each board member during the year was:

2012 2011 $ $

Patsy Reddy (Chair) 40,000 40,000 Andrew Cornwell 16,000 16,000 Rhiannon McKinnon 16,000 16,000 Charles Finny 16,000 16,000 Witi Ihimaera 16,000 16,000 44 Chris Hampson (from 1/9/2010) 16,000 13,333 Cameron Harland (from 1/9/2010) 16,000 13,333 William Somerville (to 1/9/2010) 0 2,667 Bill Birnie (to 1/9/2010) 0 2,667 Tainui Stephens (to 1/9/2010) 0 4,000

136,000 140,000

$4,500 excl. GST in total was paid to five members of the SPIF Committee who were not board members in the year under review (2011 = $8,000 in total to three members). No other payments have been made to committee members appointed by the Board who were not board members in 2012.

The NZFC has effected Directors and Officers Liability and Professional Indemnity insurance cover during the financial year in respect of the liability or costs of board members and employees.

No board members received compensation or other benefits in relation to cessation (2011=$Nil). New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand 25. EMPLOYEE REMUNERATION

During the year, the number of employees of the NZFC, not being Board members, who received remuneration and other benefits in excess of $100,000 were:

Total remuneration Number of Employees 2012 2011 New Zealand Film Commission Annual Report Two Thousand and Twelve

$250,000 - $260,000 1 1 $170,000 - $180,000 1 1 $120,000 - $130,000 1 1 $110,000 - $120,000 1 1 4 4

During the year ended 30 June 2012, no employees received compensation and other benefits in relation to cessation (2011=$Nil).

45 26. RECONCILIATION OF NET CASH FLOWS FROM OPERATING ACTIVITIES WITH THE NET SURPLUS FOR THE YEAR

2012 2011 $ $

Net Surplus/(Deficit) (477,548) 205,712

Add back: Non Cash Items (Gain)/Loss on Disposals 404 1,723 Doubtful Debts (65,388) 46,581 Bad Debts Written Off 0 40,000 Depreciation and Amortisation 176,431 176,632 (366,101) 470,648

Movements in Working Capital Decrease/(Increase) in Accounts Receivable after excluding Capital Items (2,947,761) 149,790 (Decrease)/Increase in Accounts Payable after excluding Capital Items (57,169) (35,167) (Decrease)/Increase in Employee Entitlements 48,089 5,612 (Decrease)/Increase in GST Payable (495,569) (335,320) (Decrease)/Increase in Film Income Account (18,309) 102,758 (Decrease)/Increase in Project Commitments (803,185) (4,452,997) 46

Total Movements in Working Capital (4,273,904) (4,565,324)

Net Cash Flows from Operating Activities (4,640,005) (4,094,676) New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand 27. EVENTS AFTER BALANCE DATE

There have been no significant events after the balance date.

28. MAJOR BUDGET VARIANCES

Explanations for major variances from the NZFC's budgeted New Zealand Film Commission Annual Report Two Thousand and Twelve figures in the statement of intent are as follows: Statement of comprehensive income

Lottery Grants Board (LGB) Grant

Income received from the LGB was $1.849M higher than budgeted as actual profits generated by the Lotteries Commission exceeded projections.

Development Expenditure

Development spend was below budget by $555,475 due to the introduction of new script development funding guidelines in September 2011, which aimed at lifting the quality bar and reducing the number of projects the NZFC is actively supporting in development.

Production Expenditure

Production expenditure exceeded budget by $328,083, which was made possible by the extra income NZFC received during the year from the LGB.

Marketing & Sales Expenditure

NZFC spend on Marketing & Sales was below budget by $197,519. This was primarily due to favourable exchange rates during the year and a more targeted presence at key markets. 47 Statement of financial position

Trade and other receivables

Trade and other receivables were $4.94M higher than budget, due to a timing delay in receiving a GST refund and the final installment of the LGB Grant. Also, due to delays processing a SPIF application a SPIF loan was still receivable at year end.

Project commitments

Project commitments at year end were $1.266M below budget. This is largely due to most feature film production commitments being made in the first half of the financial year, with corresponding payments made in the second half of the year, resulting in a lower balance of project commitments still payable at year end. Statement of cash flows

Receipts from Crown Revenue were higher than budgeted due to a higher than anticipated allocation from the LGB during the year. Statement of Service Performance For the year ended 30 June 2012

The following measures are based on the 2012/15 Statement of Intent (SOI). Where measures used in the 2011/14 SOI have been discontinued or amended, an explanation as to why this has happened is given below the relevant updated measures. For background on why we use these measures or further details on each funding initiative, please see the body of this Annual Report or the 2012/15 SOI. OUTCOME MEASURE

Key outcome Outcome measure Target 2011 Actual 2011 Growth in the New Zealand Gross feature film revenue of production n/a – New Measure $707 million* film industry and post production sector businesses

*This figure is for the year ending 30 March 2011 – figures are reported annually by Statistics NZ the following year (2 April 2012).

Gross revenue of production and post production sector businesses (feature film)

800

750

700

650

Z$ (million) N Z$ 600 48 550 Target

500 Actual 2008 2009 2010 2011 2012 2013 2014

Financial year

The graph above shows statistics for the last four years discontinued as it did not take into account freelance along with the targets set out in our SOI. In the 2011/14 SOI an contractors who make up the majority of the industry. impact measure of “Number of people employed in the New Gross feature film revenue is considered more indicative Zealand screen industry” was included. This measure has been of the growth of the industry. New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand IMPACT MEASURES

1. New Zealand filmmaking talent is developed and nurtured

Impact and measure Actual Target Actual Notes 2010/11 2011/12 2011/12 New Zealand filmmaking talent identified and developed 1A. Proportion of directors 1 in 7 1 in 7 (14.2%) 1 in 7 Directors recently transitioning into theatrical New Zealand Film Commission Annual Report Two Thousand and Twelve from talent identification (47 directors features include Tearepa Kahi, Mark Albiston, schemes gone on to out of 332 short Louis Sutherland, Daniel Borgman, Dan direct feature films films = 14.2%) Salmon, Glen Real (Escalator). We had forecast one in six in the SOI but the actual figure has decreased due to removing some directors that had been double-counted or miscounted in the forecast figures. 1B. Number of short 7 5 13 Blue, Meathead, Ebony Society, Go the Dogs, films selected for Bird, Lambs, Snow in Paradise, Hitch Hike, A-list festivals 43,000 Feet, Whakatiki, Brainy, Night Shift and Sonny, My Older Brother. Maintain New Zealand filmmaker career sustainability 1C. Proportion of directors n/a - New 47% 45% As at 30 June 2012, of the 168 films funded with more than one Measure by NZFC made by 102 individual directors, 46 feature film credit directors went on to direct another feature. SOI forecast was based on 50 out of 107 directors but measure has been refined so that a film is only counted once released.

Methodology: 1A. Figure is derived from total number of short films and 1B. Measure is based on qualifying A-list film festivals (as Escalator films funded from 1985 onwards and adjusted to defined in the Short Film Recommended Festivals list reflect directors who have directed more than one short film, available on our website). 49 e.g. Taika Waititi directed two NZFC-funded shorts before 1C. Figure is derived from all NZFC-funded films since 1978 and moving on to feature films so is only counted once. A short released. Directors who are already established in feature filmmaker who goes on to direct an Escalator film would films when we fund them are not counted under this measure be counted in this statistic. This measure consolidates the e.g. Andrew Adamson. Directors who have gone on to make a previous SOI measures: film independent of the NZFC are counted so long as that film • Number of directors of NZFC-funded short films gone on was released in New Zealand. The proportion of directors to direct feature films who have directed more than two films is 14%. • Number of directors of Escalator films gone on to write, direct or produce a feature film. Previous impact measure “Number of people employed in the screen industry” has been replaced with outcome measure (see Outcome Measure section above). 2. Great New Zealand stories are told through the medium of film

Impact and measure Actual Target Actual Notes 2010/11 2011/12 2011/12 Higher quality New Zealand film projects 2A. Percentage of films 83% 80% 100% Of five narrative feature films funded (see entering production with output 2d), all had received some form of NZFC production finance NZFC development funding. How Far is Heaven that also received NZFC and Giselle are documentaries and excluded development funding from this measure. 2B. Amount of time n/a - New Baseline tbc 3.8 years The Weight of Elephants, Mt Zion and Shopping taken to transition Measure commenced production in 2011/12 and from development received direct development funding from the to production NZFC. The actual figure is the average across these three projects. 2C. Number of features 2 n/a - New 3 The Orator (O Le Tulafale), The Last Dogs of selected for A-list Measure Winter and Two Little Boys festivals

Methodology: 2A. Percentage is derived from total films receiving NZFC Previous impact measures that have been discontinued are: production financing in the financial year (excluding low- • Ratio of New Zealand Government (i.e. NZFC, Film Fund, SPIF) budget features and documentaries). Low-budget features funding to total budget (average for all films funded that year): include Escalator films and films with budgets under $1 We have removed this measure because of the myriad external million. Development funding includes devolved development factors that impact on the availability of private/market funding (funding given to producers to develop the various investment. We monitor the average ratio of private investment feature film projects within their slate rather than on a to total budget for films for contextual information. For films project-specific basis). that commenced production during 2011/12 this figure was 17%. 2B. New measure. This measure only applies to NZFC-funded • Level of stakeholder satisfaction: We have broken this measure films that have received direct (as opposed to devolved) 50 down further and it is now reported against the relevant development funding from NZFC. The measure is calculated outputs. from first tranche of development funding (at any level) to • Number of SPIF grants made (based on final certificates first day of principal photography. issued): Impact measures for SPIF have been removed as the 2C. Measure only applies to NZFC-funded films. A-list festivals/ NZFC administers the scheme only and has no control over the markets are as defined by our Sales & Marketing team from level of demand. time to time – see http://www.nzfilm.co.nz/distribution/ • Number of LBSPG & PDV grants made: Impact measures for international/key-festivals-and-markets. LBSPG & PDV have been removed as the NZFC administers the scheme only and has no control over the level of demand. New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand 3. New Zealand films are seen and valued

Impact and measure Actual Target Actual Notes 2010/11 2011/12 2011/12 More people see New Zealand films 3A. Number of NZFC-funded 4 films in last 2 films in last 3 films in last Home by Christmas, Boy and Sione’s 2: films with estimated 3 years 3 years 3 years Unfinished Business.

domestic admissions New Zealand Film Commission Annual Report Two Thousand and Twelve of over 100,000 3B. Estimated annual 323,000 400,000 393,000 Films released during the year were: Love domestic admissions for Story, Billy T: Te Movie, The Devil’s Rock, The all NZFC-funded films Orator (O Le Tulafale), When A City Falls, Rest for the Wicked, Sione’s 2: Unfinished Business, The Most Fun You Can Have Dying, Shihad: Beautiful Machine and Brother Number One. 3C. Gross revenue for $764,000 for n/a - New $761,000 for Most of the films released during the year NZFC-funded films films released in Measure films released in were aimed at a domestic audience rather 2010/11. 2011/12. than an international audience (where traditionally the majority of gross revenue $2.97 million $2.07 million is received), with the exception of The Devil’s for total sales for total sales Rock. The 2010/11 figure is different from income. income. the SOI as the previous figures incorrectly allocated $2.3 million of income for Boy to the 2010/11 financial year. New Zealand films are valued by New Zealanders 3D. Percentage of people n/a - New Baseline 90% Results from NZ On Air/NZFC Public who think New Zealand Measure established, Perception Survey conducted in films are important target set May/June 2012. at 75%

Methodology: 51 3A. All admissions are allocated to the financial year the 3C. This measure replaced the previous measure of “Distribution film is released even if admissions occurred in the next fees earned by NZ Film” which is now an output measure financial year. (see 4b). As distribution fees only reflected the commission earned by NZ Film where it was acting as sales agent and 3B. All admissions are allocated to the financial year the not necessarily all films funded, we changed the measure film is released even if admissions occurred in the next to gross revenue earned by funded films based on films financial year. However, the Actual figure for 2010/11 includes released in that financial year. Gross revenue excludes admissions during the 2010/11 period for Home by Christmas pre-sales used for production financing and reflects actual and Boy. If those films are excluded the Actual figure for income collected by the collection agent (which may be the 2010/11 is 145,500. NZFC). We have also reported the total sales income received in 2011/12 by the NZFC as collection agent as this measure covers all funded films and not just films released in the year.

3D. Wording in 2011/14 SOI was “Percentage of people who say they value NZFC films” and the target of 75% related to this measure. Measure was re-worded to reflect actual wording of survey. OUTPUT MEASURES

1. Talent and capability building Budget 2011/12 – $4,495,713 Actual 2011/12 – $3,540,742

Output measure Actual Target Actual Notes 2010/11 2011/12 2011/12 1a. Number of short films 22 22 22 (16 Fresh Fresh 30: Blankets, Queenie, Horse (aka Soldier fully funded by the NZFC Shorts and Boy), Taniwha, The Hunting Party, The Light 6 Premiere Harvester, Wing Chun and Two Eyes, Two Hands, Shorts) Two Feet.

Fresh 10: Airmail, The God Painter, Here Be Monsters (aka Eyes, Behind and Before), Fire in Cardboard City, Friday Tigers, I Kill, I’m Going to Mum’s and Purerehua.

Premiere Shorts: Bullrush, U.F.O., Dive, Ride, Wide-Eyed and Mr Bernstein. 1b. Average overall n/a - New n/a - New 3.48 Baseline target for 2012/13 set at 3.75. satisfaction rating Measure Measure Rating is out of five with one representing in dealing with team Strongly Dissatisfied and five representing responsible for Strongly Satisfied. short films 1c. Number of low budget 4 4 3+1 Three Escalator films funded Fantail,( Shirley films funded by the NZFC & the Hungary Bear, Everything We Loved (aka Stealing Tommy)) plus one Make My Movie film (How to Meet Girls from a Distance). 1d. Number of training 43 19 52 14 x PITA, 16 x NZFC initiatives, 22 x joint initiatives funded by the initiatives (see Appendix for details). 52 NZFC including Producer Previously only NZFC initiatives measured. International Travel Target had assumed fewer PITA applications Assistance (PITA) and had not anticipated the high amount of joint initiatives compared to last year due to a changed industry infrastructure support policy (previously these initiatives came out of annual funding for the guilds). 1e. Average rating of training n/a - New Previously 75% 4.52 Five point ratings are mostly used for initiatives excluding Measure which equates to measuring event satisfaction rather than producer international 3.75 rating on 5 percentages. Baseline target for 2012/13 set travel assistance point scale at 3.75. Rating is out of five with one equating to Strongly Dissatisfied and five representing Strongly Satisfied. New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand Methodology: 1b. Figures taken from stakeholder survey conducted in 2011/12.

1c. Escalator was launched in 2010/11 and we committed to the scheme for three years. In 2011/12 we committed to three films as it was felt that the other films shortlisted did not meet the low-budget ethos of the Escalator scheme. However, we also jointly funded the Make My Movie low-budget film initiative with NZ On Air. From 2012/13 New Zealand Film Commission Annual Report Two Thousand and Twelve this measure is now aimed at any low-budget talent development initiative.

1d . This output relates to workshops, seminars and internships and Producer International Travel Assistance (PITA). Previously we measured these activities separately but they have now been consolidated as they all relate to capability building. These initiatives also contribute to encouraging and promoting, for the benefit of the New Zealand film industry, the study and appreciation of films and of filmmaking (section 17(4) of the NZFC Act). This measure excludes Talent Awards and Professional Development Awards made to individual filmmakers as these Awards are demand-based and discretionary.

1e. We devolve a number of training initiatives to guilds. These results are based on seminars and workshops run by Women in Film & Television, Screen Directors Guild of New Zealand and Film NZ which is only a small subset of the initiatives run. Only a small number of respondents gave feedback but we aim to increase the amount of feedback we receive in coming years. The actual questions asked by each guild varied so we will also aim for consistency across the way feedback is obtained. Only initiatives that are at least a half-day long are expected to seek feedback. 53 2. Script and production funding and advice Budget 2011/12 – $13,331,531 Actual 2011/12 – $14,034,890

Output measure Actual Target Actual Notes 2010/11 2011/12 2011/12 2a. Number of scripts at 21 10 15 Drop from previous year is due to rigorous advanced development review of projects in development and their stage that received NZFC likelihood to proceed into production. development funding 2b. Time taken to provide n/a - New 4 weeks 4 weeks Average figure for processing. feedback and advice from Measure (monthly cycle) receiving a new draft 2c. Average overall n/a - New n/a - New 3.56 Baseline target for 2012/13 set at 3.75. satisfaction rating Measure Measure Rating is out of five with one representing in dealing with team Strongly Dissatisfied and five representing responsible for Strongly Satisfied. development funding 2d. Number of NZFC-funded 9 4 7 Mt Zion, The Weight of Elephants, Shopping, feature films The Medicine Woman, The Dark Horse, How Far is Heaven and Giselle. Not included: Utu restoration or Make My Movie (counted under Escalator). 2e. Average overall n/a – New n/a – New 3.56 Baseline target for 2012/13 set at 3.75. satisfaction rating measure measure Rating is out of five with one representing in dealing with team Strongly Dissatisfied and five representing responsible for Strongly Satisfied. production funding

Methodology: 54 2a. In order to determine whether a project is at advanced Previous measures that have been discontinued or amended: development stage we apply the following criteria: a) director • Number of producers receiving travel assistance to attached; b) draft at a stage that is advanced; and c) project attend overseas markets: Now encompassed within output overall is approaching market-readiness/market-ready/ measure 1d. currently being packaged or financed. NZFC development • Percentage of NZFC-funded feature films reflect New Zealand funding includes Te Paepae Ataata funding or devolved culture and/or promote New Zealand talent: Removed as development funding. the NZFC is unable to fund films that do not have significant 2b. Measured from the due date for the relevant funding round New Zealand content so would always be 100%. (currently the 20th of the month) to notification of decision.

2c and 2 e. Figures taken from stakeholder survey conducted in 2011/12.

2d. Measure counts new films invested in (not films that have received additional investment). Actual figures in 2011/12 are higher than targets set for that year due to low-budget features and feature documentaries which we do not specifically allow for. Figures exclude Escalator films which are measured in Output 1. New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand 3. Film incentive scheme administration and certification Budget 2011/12 – $120,088 Actual 2011/12 – $81,650

Output measure Actual Target Actual Notes 2010/11 2011/12 2011/12 3a. Percentage of complete 100% SPIF, 71% 100% 100%

SPIF and LBSPG final LBSPG New Zealand Film Commission Annual Report Two Thousand and Twelve applications processed within three months 3b. Time taken to n/a – New Within one From April 2012 Prior to April 2012, measure was to update update SPIF and measure month of FAQs every two months. This measure was SPIF: average LBSPG Frequently relevant achieved for SPIF but not LBSPG. Current three weeks Asked Questions meeting measure in place from April 2012. LBSPG: five SPIF FAQs revised 12 April 2012 following weeks 5 March and 4 April 2012 meetings.

LBSPG FAQs revised 27 April 2012 following 7 November 2011, 22 December 2011 and 22 March 2012 meetings and included issues raised in the period since the last update (March 2010).

Processes are being improved to ensure this measure is met. 3c. Average overall n/a – New n/a – New 3.59 and 3.87 Baseline target for 2012/13 will be 3.75. satisfaction rating measure measure respectively Rating is out of five with one representing in dealing with team Strongly Dissatisfied and five representing responsible for Strongly Satisfied. regulatory approvals and financial incentives 55

Methodology: 3a. This timeframe is based on fully-completed applications Previous measures that have been discontinued or amended: being received. Occasionally further information is required • 3b. This measure was changed during the 2011/12 year to process an application. The two week period over from FAQs to be updated every two months. As meetings Christmas and New Year is excluded from the calculations are not held on a regular basis, we have adjusted the as applications are not being processed during this time. measure to better reflect the process. Measure has been Most fully-completed applications take between 2.5 and further refined to refer to the number of weeks rather 3 months to process. than a percentage. 3c. Figures taken from stakeholder survey conducted in 2011/12. 4. Distribution support, marketing and sales Budget 2011/12 – $1,806,668 Actual 2011/12 – $1,610,611

Output measure Actual Target Actual Notes 2010/11 2011/12 2011/12 4a. Number of prints & 7 7 12 Three self-distributed films Russian( Snark, advertising grants made Sky Whisperers Ranginui and Rest for the Wicked) received grants this year in addition to nine traditional distributors (see Appendix for detail). Our policy for who is eligible for P&A grants has widened. 4b. Distribution fees earned $417,506 $195,000 $220,568 by NZ Film 4c. Percentage of NZFC- n/a – New 70% 70% As at June 2012, of the 112 feature films funded feature films measure funded between 1978 and 2004, 78 films have restored or undergoing been restored or are undergoing restoration. restoration 4d. Average overall n/a – New n/a – New 3.31 Baseline target for 2012/13 will be 3.75. satisfaction rating measure measure Rating is out of five with one representing in dealing with team Strongly Dissatisfied and five representing responsible for feature Strongly Satisfied. film sales agency, distribution and marketing

Methodology: 4c. Section 17(3) of the NZFC Act states that one of our functions Discontinued measures from the 2011/14 SOI are: is to encourage and promote the proper maintenance of • Number of local film festivals funded: Target in 2011/14 SOI films in archives. However, funding for The Film Archive was five, actual for 2011/12 was three. 56 has been removed from the NZFC and is provided directly • Total number of festivals/markets attended by NZ Film: from the Ministry for Culture and Heritage. Nevertheless, Target in 2011/14 was four and actual was four. Each year we still undertake to ensure those films we have funded NZ Film attends at least Clermont-Ferrand, Cannes and the are accessible for future generations. Films made after American Film Market so results rarely differ. The distribution 2004 tend to have accessible materials already. Restoration fees measure is more meaningful as it reflects the results of in this case means transferring to Digital Betacam with these attendances – as presence at markets is key for picture and audio enhancement and a one pass colour grade. converting to sales. Accessibility to a further 26 (pre 2004) titles will be assessed as the next step followed by the post 2004 titles.

4d. Figures taken from stakeholder survey conducted in 2011/12. New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand Independent Auditor’s Report

To the readers of New Zealand Film Commission’s financial statements and non financial Matters relating to the electronic performance information for the year ended 30 June 2012 presentation of the audited

The Auditor General is the auditor of New Zealand Film error. In making those risk assessments, we consider internal financial statements and non Commission (the Commission). The Auditor General has appointed control relevant to the preparation of the Commission’s financial financial performance information me, Kelly Rushton, using the staff and resources of Audit statements and non financial performance information that fairly New Zealand, to carry out the audit of the financial statements reflect the matters to which they relate. We consider internal This audit report relates to the financial statements and non financial performance information of the Commission control in order to design audit procedures that are appropriate in and non financial performance information of New Zealand Film Commission Annual Report Two Thousand and Twelve on her behalf. the circumstances but not for the purpose of expressing an opinion New Zealand Film Commission for the year We have audited: on the effectiveness of the Commission’s internal control. ended 30 June 2012 included on New Zealand • the financial statements of the Commission on pages 23 to 47, An audit also involves evaluating: Film Commission’s website. The New Zealand that comprise the statement of financial position as at 30 June • the appropriateness of accounting policies used and whether Film Commission’s Board is responsible for the 2012, the statement of comprehensive income, statement of they have been consistently applied; maintenance and integrity of New Zealand Film changes in equity and statement of cash flows for the year ended • the reasonableness of the significant accounting estimates Commission’s website. We have not been engaged on that date and notes to the financial statements that include and judgements made by the Board; to report on the integrity of New Zealand Film accounting policies and other explanatory information; and • the appropriateness of the reported non financial Commission’s website. We accept no responsibility for • the non financial performance information of the Commission performance information within the Commission’s framework any changes that may have occurred to the financial on pages 48 to 56 that comprises the statement of service for reporting performance; statements and non financial performance information performance, and which includes the report about outcomes. since they were initially presented on the website. • the adequacy of all disclosures in the financial statements Opinion and non financial performance information; and The audit report refers only to the financial statements In our opinion: • the overall presentation of the financial statements and non and non financial performance information named • the financial statements of the Commission on pages 23 to 47: financial performance information. above. It does not provide an opinion on any other • comply with generally accepted accounting practice in We did not examine every transaction, nor do we guarantee information which may have been hyperlinked to New Zealand; and complete accuracy of the financial statements and non financial or from the financial statements and non financial • fairly reflect the Commission’s: performance information. We have obtained all the information and performance information. If readers of this report explanations we have required and we believe we have obtained • financial position as at 30 June 2012; and are concerned with the inherent risks arising from sufficient and appropriate audit evidence to provide a basis for our electronic data communication they should refer • financial performance and cash flows for the year ended audit opinion. to the published hard copy of the audited financial on that date. Responsibilities of the Board statements and non financial performance information • the non financial performance information of the Commission as well as the related audit report dated 31 October on pages 48 to 56: The Board is responsible for preparing financial statements and non financial performance information that: 2012 to confirm the information included in the audited • complies with generally accepted accounting practice financial statements and non financial performance • comply with generally accepted accounting practice in in New Zealand; and information presented on this website. New Zealand; • fairly reflects the Commission’s service performance 57 and outcomes for the year ended 30 June 2012, including for • fairly reflect the Commission’s financial position, financial Legislation in New Zealand governing the preparation each class of outputs: performance and cash flows; and and dissemination of financial information may differ • its service performance compared with forecasts in the • fairly reflect its service performance and outcomes. from legislation in other jurisdictions. statement of forecast service performance at the start The Board is also responsible for such internal control as is of the financial year; and determined necessary to enable the preparation of financial statements and non financial performance information that are • its actual revenue and output expenses compared with the free from material misstatement, whether due to fraud or error. forecasts in the statement of forecast service performance The Board’s responsibilities arise from the Crown Entities Act at the start of the financial year. 2004 and the New Zealand Film Commission Act 1978. Our audit was completed on 31 October 2012. This is the date at which our opinion is expressed. Responsibilities of the Auditor The basis of our opinion is explained below. In addition, we outline We are responsible for expressing an independent opinion on the the responsibilities of the Board and our responsibilities, and we financial statements and non financial performance information explain our independence and reporting that opinion to you based on our audit. Our responsibility arises from section 15 of the Public Audit Act 2001 Basis of opinion and the Crown Entities Act 2004. We carried out our audit in accordance with the Auditor General’s Auditing Standards, which incorporate the International Standards Independence on Auditing (New Zealand). Those standards require that we When carrying out the audit, we followed the independence comply with ethical requirements and plan and carry out our requirements of the Auditor General, which incorporate the audit to obtain reasonable assurance about whether the financial independence requirements of the New Zealand Institute of statements and non financial performance information are free Chartered Accountants. from material misstatement. Other than the audit, we have no relationship with or interests Material misstatements are differences or omissions of amounts in the Commission. and disclosures that would affect a reader’s overall understanding of the financial statements and non financial performance information. If we had found material misstatements that were not corrected, we would have referred to them in our opinion. An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements K M Rushton and non financial performance information. The procedures Audit New Zealand selected depend on our judgement, including our assessment of On behalf of the Auditor General risks of material misstatement of the financial statements and Wellington, New Zealand non financial performance information, whether due to fraud or 58 New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand

Writer/director Sam Kelly, Lambs Appendix

Utu Redux...... Conditional offer Key: Project Kiwi Film Productions Ltd Production Company/s Graeme Cowley Producer/s Keith Aberdein and Geoff Murphy Writer/s Geoff Murphy Director/s B/Feature films with additional investment from the NZFC A/New feature films with investment from NZFC New Zealand Film Commission Annual Report Two Thousand and Twelve When A City Falls (documentary)...... $211,000 The amounts in this section are the total NZFC equity investment Frank City Falls Ltd in the film and therefore include all previous development funding Gerard Smyth and Alice Shannon received by the project. Short-term loans are also included in this n/a figure but sales advances and non-recoupable grants are not. Gerard Smyth

Mt Zion (aka A Gift to Zion)...... $1,389,649 Mr Pip...... $300,000 Small Axe Films Ltd Mister Pip Ltd Quinton Hita Robin Scholes, Andrew Adamson, Dean Vanech and Leslie Tearepa Kahi Urdang Tearepa Kahi Andrew Adamson The Weight of Elephants...... $2,300,000 Andrew Adamson Three Birds Ltd and Zentropa Romeo and Juliet: A Love Song...... $55,000 Leanne Saunders and Katja Adomeit Factory Fiction Ltd Daniel Borgman Michael O'Neill and Peter van der Fluit Daniel Borgman Michael O'Neill, Peter van der Fluit, Tim van Dammen How to Meet Girls from a Distance (Make My Movie)...... $50,000 Tim van Dammen Traces of Nut Ltd Andrew Beattie and Ruth Korver C/Digital features with post production Richard Falkner, Dean Hewison and Sam Dickson grants from the NZFC Dean Hewison Mental Notes (documentary)...... $10,000 n/a The Medicine Woman...... $2,000,000 Jim Marbrook Medicinal Films Ltd n/a John Barnett and Chris Hampson 59 Jim Marbrook Dana Rotberg Dana Rotberg Moving (documentary)...... $16,925 Christchurch Moving Productions Ltd Shopping...... $1,914,133 Michael Stephens Shopping NZ Ltd Kiyong Park Sarah Shaw and Anna McLeish Kiyong Park Louis Sutherland and Mark Albiston Louis Sutherland and Mark Albiston Pictures of Susan (documentary)...... $25,000 Octopus Pictures Ltd How Far is Heaven Tash Christie and Dan Salmon (aka Jerusalem/Hiruharama) (documentary)...... $182,453 n/a River Pictures Ltd Dan Salmon Miriam Smith n/a Russian Snark...... $3,200 Christopher Pryor and Miriam Smith Godzone Pictures Ltd Liz DiFiore The Dark Horse...... Conditional offer Stephen Sinclair Four Knights Film Ltd Stephen Sinclair Tom Hern and Jim Marbrook James Napier Robertson Song of the Kauri (documentary)...... $10,000 James Napier Robertson Little Hawk Films Ltd Mathurin Molgat Giselle (documentary)...... $345,000 n/a GFC (Giselle) Ltd Mathurin Molgat Matthew Metcalfe n/a Toa Fraser Tatarakihi - The Children of Parihaka (documentary)...... $10,000 Winter (Seed Development Fund)...... $9,000 Gaylene Preston Productions Ltd Dianne Taylor Gaylene Preston and Paora Joseph Southern Lights...... $17,500 n/a Index Films Ltd Paora Joseph Jonathan King and Matthew Grainger The Last Ocean (documentary)...... $25,000 Matthew Grainger Fisheye Films Ltd tbc Peter Young The 10pm Question...... $17,500 Peter Young Lippy Pictures Ltd Peter Young Donna Malane and Paula Boock The Red House (documentary)...... $10,000 Donna Malane and Paula Boock n/a tbc Alyx Duncan Heart of an Angel...... $20,000 Alyx Duncan Blueskin Films Ltd Alyx Duncan Catherine Fitzgerald Riwia Brown D/Escalator low budget feature films tbc (Includes $10,000 Mentor fund and $10,000 Sales and Marketing fund) This Way (aka 13)...... $3,000 White Balance Pictures Ltd Fantail...... $270,000 David White Yes Please Films Ltd & Curious Ltd Henry Feltham Sarah Cook and Matt Noonan tbc Sophie Henderson Curtis Vowell The Whole World’s Watching...... $17,500 WWW Movies Ltd Shirley & the Hungary Bear...... $270,000 Richard Thomas and Owen Hughes My Dad Shot Your Dad Ltd Alan Erson Glen Real Alan Erson Wayne Ching Alan Dickson Holy Cow...... $9,000 Diva Productions Ltd 60 Everything We Loved (aka Stealing Tommy)...... $270,000 Arani Cuthbert Hijinx Pictures Ltd Lynda Topp and Jools Topp Tom Hern and Luke Robinson tbc Max Currie Max Currie Magpie Hall...... $20,000 Index Films Ltd E/NZFC development finance for feature Jonathan King and Matthew Grainger film projects Jonathan King Jonathan King i) Early Development Fund The Changeover...... $25,000 A Bittersweet Tale of Glory (Seed Development Fund)...... $9,000 Afterimage Films Ltd Wayne Ching Angela Littlejohn, Stuart McKenzie and Miranda Harcourt Holy Cow (Writer Development Loan)...... $7,750 Stuart McKenzie Sarah Boddy Stuart McKenzie

Puawai’s Flowers (Seed Development Fund)...... $9,000 We Will Not Cease...... $17,930 Hone Kouka Escapade Pictures Ltd Philippa Campbell and Roger Randall Cutler The Tutor (Seed Development Fund)...... $9,000 Glenn Colquhoun Dave Armstrong Christopher Dudman

The Unbearable Darkness of Gavin Distant Fires...... $9,000 (Seed Development Fund)...... $9,000 Godzone PIctures Ltd Helena Brooks and Jaquie Brown Liz DiFiore

New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand Two Dogs (Seed Development Fund)...... $9,000 Stephen Sinclair Savage Stephen Sinclair Blood Rush...... $3,000 The Graduation...... $16,500 n/a The Gibson Group Ltd Karl Zohrab Dave Gibson Brian Challis Matthew Saville tbc tbc

Mountain Oysters...... $5,000 Born Tu Dance...... $20,000 Sycorax Enterprises Ltd Sector 7 Productions Ltd

Grant Campbell and Bryce Campbell Daniel Story and Jill Macnab New Zealand Film Commission Annual Report Two Thousand and Twelve Grant Campbell and Bryce Campbell Hone Kouka tbc Tammy Davis

Old Nut Crackers...... $17,500 The Ballad of Helen and the Go Go Ninjas...... $20,000 n/a n/a tbc tbc Stewart Main Michael Bennett Stewart Main tbc

Return...... $17,000 Moifaa...... $18,600 n/a Liberty Films Ltd tbc Richard Fletcher Kelly Kilgour Jeff Murphy Peter Burger tbc

Tuvalu...... $3,000 Blue Smoke...... $20,000 Filmwork Ltd Lone Kauri Ltd Fiona Copland Brendan Donovan and Kylie du Fresne Nigel McCulloch, Jarrod Holt and Ryan Hutchings Brendan Donovan Nigel McCulloch, Jarrod Holt and Ryan Hutchings tbc

Wounded...... $11,900 Kiwi Christmas...... $3,000 THE Film Ltd Torrent Films Ltd Trevor Haysom Tim Sanders Brad Haami Andrew Gunn and Tony Simpson tbc Tony Simpson 61 The Magic Shoes...... $7,500 1 Way (aka The One Thing)...... $18,000 Film and Television Production Services Ltd n/a Neil Stichbury tbc Michael Bennett Bob Moore Cris Casares tbc

Reservoir Hill...... $20,000 Breathing is Singing (documentary)...... $10,000 KHF Media Ltd Kaitiaki Productions Ltd David Stubbs, Thomas Robins and Richard Fletcher Robert Boyd Bell and Tom Parkinson David Stubbs, Thomas Robins and Richard Fletcher Ian Fraser David Stubbs and Thomas Robins Michael Seresin

53rd Victim...... $20,000 Shearer’s Motel...... $3,000 Whenua Films Ltd n/a Ainsley Gardiner Lala Rolls and Maggie Miles Pip Hall Lala Rolls and Kirk Torrance Peter Burger Lala Rolls

Katherine Mansfield Project...... $18,300 KHF Double Horror Project...... $25,000 M F Films Ltd KHF Media Ltd Michelle Fantl David Stubbs and Thomas Robins Fiona Samuel David Stubbs and Thomas Robins Fiona Samuel David Stubbs and Thomas Robins Untitled Community Media Trust Project (aka Thigh of the iii) Advanced Development Fund Passionate Nymph, aka The Great Maiden's Blush)...... $12,000 The Patriarch (aka Bulibasha, aka Mahana)...... $22,000 First Blush Films Ltd Jump Film & Television Ltd Andrea Bosshard, Shane Loader and Rangimoana Taylor Robin Scholes Andrea Bosshard John Collee Andrea Bosshard and Shane Loader Lee Tamahori ii) Chief Executive Delegations Ergotism...... $20,000 The Other Side of the World...... $5,000 Bad Bread Ltd n/a Jonathan Dowling, Andrew Beattie, Sue Thompson and Jon tbc Staton Sam Holst Stefan Rochfort Sam Holst Stefan Rochfort

Shopping...... $20,000 My Name Was Judas...... $69,847 Shopping NZ Ltd Idas Film Ltd Sarah Shaw and Anna McLeish Matthew Horrocks, Tim Sanders and Adrian Burr Louis Sutherland and Mark Albiston Guy Hamling Louis Sutherland and Mark Albiston Paul Schrader

The Dark Horse...... $10,000 The Dark Horse...... $25,000 Four Knights Film Ltd Four Knights Film Ltd Tom Hern and Jim Marbrook Tom Hern and Jim Marbrook James Napier Robertson James Napier Robertson James Napier Robertson James Napier Robertson

KHF Double Horror Project...... $2,500 The Weight of Elephants...... $15,000 KHF Media Ltd Three Birds Ltd David Stubbs and Thomas Robins Leanne Saunders and Katja Adomeit David Stubbs and Thomas Robins Daniel Borgman David Stubbs and Thomas Robins Daniel Borgman

Long Black Coat...... $10,000 iv) Board Development Decisions Eek Ltd Pictures of Susan...... $35,000 62 Kristian Eek Octopus Pictures Ltd Jon Coutts and Jane Warren Tash Christie and Dan Salmon tbc n/a The Changeover...... $15,000 Dan Salmon Afterimage Films Ltd Beyond the Known World...... $30,500 Angela Littlejohn, Stuart McKenzie and Miranda Harcourt Reservoir Films Ltd Stuart McKenzie Matthew Horrocks Stuart McKenzie Dianne Taylor The Rehearsal...... $20,000 Pan Nalin n/a Bridget Ikin F/Development awards Emily Perkins i) Professional Development Awards Alison Maclean Angus Benfield...... $4,985 Jojo Rabbit...... $4,950 (LA Variety Family Entertainment & Faith Based Summit) Defender Films Ltd Chelsea Winstanley and Emanuel Michael Ari Wegner...... $5,000 Taika Waititi (Cannes with Night Shift) Taika Waititi James Trevena-Brown...... $5,000 Kiwi Flyer...... $15,000 (Kurt Russell and Goldie Hawn Coaching) Torrent Films Ltd Jen Wood...... $5,000 Tim Sanders (Production Internship at Arsam International)

New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand Tony Simpson and Andrew Gunn Tony Simpson Marshall Smith...... $5,000 (Billboard and Hollywood Reporter Film and Music Conference) Roseanne Liang...... $4,620 To Cannes Film Market (Snowblade Director Internship) Matthew Horrocks...... $7,000 Shuchi Kothari...... $4,030 Matt Noonan...... $5,000 (Script Factory Writer’s Workout) Tim White...... $9,000 Simon Reira...... $3,400 (Wet Plate Photography Tutorship) To International Documentary Festival Amsterdam (IDFA)

Stephen Gallagher...... $5,000 Annie Goldson...... $2,360 New Zealand Film Commission Annual Report Two Thousand and Twelve (Composer Internship) Costa Botes...... $4,129 Tom Hern...... $5,000 (Clermont-Ferrand and Berlin) To Toronto International Financing Forum 2011

Tom McLeod...... $5,000 Mina Matheson...... $5,250 (Hollywood Music Workshop– Klosterneuburg, Vienna) To Venice International Film Festival 2011 ii) CEO Delegations (Professional Development) Catherine Fitzgerald ...... $6,600

Roseanne Liang...... $2,725 ii) General (2011 Golden Rooster Film Awards attendance) Matthew Horrocks (Australia – packaging & financing)...... $1,000 Sam Kelly...... $2,650 (Binger Directors Artist in Residency) Sue Thompson (LA – packaging & financing)...... $5,000

Welby Ing...... $5,000 H/Festival travel assistance for (Judith Weston Workshops) feature filmmakers iii) Talent Awards Duncan Sarkies – Two Little Boys...... $3,470 Berlin International Film Festival Mike Riddell...... $20,000 Tusi Tamasese – The Orator (O Le Tulafale)...... $1,387 Nick Ward...... $20,000 Venice International Film Festival Robert Sarkies and Duncan Sarkies...... $30,000 Tusi Tamasese – The Orator (O Le Tulafale)...... $2,984 Florian Habicht...... $20,000 Sundance Film Festival

South Pacific Pictures Ltd...... $50,000 Tusi Tamasese – The Orator (O Le Tulafale)...... $4,805 63 Toronto International Film Festival Catherine Fitzgerald...... $50,000 iv) CEO Talent Awards I/Festival travel assistance for short filmmakers Justine Simei-Barton – Snow in Paradise...... $3,083 Sam Holst...... $10,000 Berlin International Film Festival Stephen Kang...... $10,000 Nikki Si’ulepa – Snow in Paradise...... $2,962 Tammy Davis...... $10,000 Berlin International Film Festival

Tusi Tamasese...... $20,000 Sam Holst – Meathead...... $2,995 Berlin International Film Festival G/Producer International Travel Assistance Tom Hern – Lambs...... $700 i) To Markets Berlin International Film Festival

To Beijing International Film Festival/CFCC Pitch & Catch 2012 Zia Mandviwalla – Night Shift...... $5,000 George Andrews ...... $5,000 Cannes Film Festival

Maile Daugherty...... $2,500 Sam Kelly – Lambs...... $4,996 Clermont-Ferrand Short Film Festival Michael Bennett...... $2,500 Hamish Bennett – The Dump...... $3,100 Samuel Miller...... $5,000 Palm Springs Film Festival

Tui Ruwhiu...... $5,000 Peter McCully – Eeling...... $3,100 Palm Springs Film Festival

Richard Mans – Abiogenesis...... $3,100 Palm Springs Film Festival Matthew Saville – Hitch Hike...... $3,495 Queenie...... $30,000 Tampere Film Festival Michelle Savill Sam Burt and Jeremy Liss Amber Easby and Heather Lee – 43,000 Feet...... $3,866 Paul Neason Tribeca Film Festival Horse (aka Soldier Boy)...... $30,000 Louise Leitch – Whakatiki...... $3,399 Sarah Cook Tribeca Film Festival Jessica Bluck Melissa Dodds – Whakatiki...... $2,857 Jessica Bluck Tribeca Film Festival Taniwha...... $30,000 Richard Mans – Abiogenesis...... $1,000 David White and Melissa Dodds Valladolid Film Festival Asuka Sylvie Asuka Sylvie J/Short film projects with production The Hunting Party...... $30,000 finance from the NZFC Maile Daugherty Premiere Shorts funding scheme through executive producer Nick Ward and Andrew Beattie groups Andrew Beattie

i) A Collective Intake of Breath – Maile Daugherty and Michael The Light Harvester...... $30,000 Bennett Sarah Howden Bullrush...... $90,000 Jason Lei Howden Sarah Cook Jason Lei Howden Mick Andrews Two Eyes, Two Hands, Two Feet...... $30,000 Miki Magasiva Stephen Lovatt U.F.O...... $90,000 Kirsten Green Mhairead Connor Kirsten Green Gregory King Wing Chun...... $30,000 Gregory King Fiona Copland ii) Tauihu Shorts – Brad Haami, Poata Eruera and Tui Ruwhiu Ant Sang Ant Sang Dive...... $90,000 64 Julia Parnell The God Painter...... $10,000 Matthew Saville Helmut Marko Matthew Saville Joseph Ryan Pavel Kvatch Ride...... $90,000 Leela Menon Airmail...... $10,000 Karyn Childs Kirsty Cooper Karyn Childs Prue Cunningham Prue Cunningham iii) Tom Thumb Shorts – Chris Dudman, Polly Fryer and Steven O’Meagher Here Be Monsters (aka Eyes, Behind and Before)...... $10,000 Nadia Maxwell Wide-Eyed...... $90,000 Nic Gorman Catherine Fitzgerald Nic Gorman and Paul Glubb Catherine Bisley Catherine Bisley Fire in Cardboard City...... $10,000 Matt Heath Mr Bernstein...... $90,000 Phil Brough Jackie Dennis Phil Brough and Matt Heath Deb Filler Lance Kelleher Friday Tigers...... $10,000 Julia Parnell Fresh Shorts funding scheme through the NZFC Aidee Walker Aidee Walker Blankets...... $30,000 Melissa Dodds I Kill...... $10,000

New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand Casey Whelan David White Louise Leitch David White and Paul Wedel David White and Paul Wedel I’m Going to Mum’s...... $10,000 Chinese Delegation Writers Meeting...... $450 Jeremy Macey Eave Marketing Workshop...... $6,180 Lauren Jackson Lauren Jackson MPA-CICE Workshop...... $1,000

Purerehua...... $10,000 37°South Partnership...... $12,731 Sandra Richmond Renae Maihi Accelerator...... $9,755

Renae Maihi No Borders...... $18,667 New Zealand Film Commission Annual Report Two Thousand and Twelve

K/Short film projects with post production ACE...... $4,617 finance from the NZFC ii) Joint Initiatives Abiogenesis...... $2,887 Directors Finders Series in association with SDGNZ...... $15,000 Richard Mans Richard Mans Killer Films Internship in association Richard Mans with Script to Screen...... $20,000

Hitch Hike...... $10,570 Screenwriting workshops in association Julia Parnell with EAT Wellington...... $7,720 Matthew Saville Content workshop Matthew Saville in association with Film Wellington and Grow Wellington...... $500 I Kill...... $3,217 Pitching workshop in association with NZWG...... $1,440 David White David White and Paul Wedel Miranda Harcourt Actors Workshop David White and Paul Wedel in association with Actors’ Equity NZ...... $4,480

Lambs...... $13,259 Docu72 in association with the Documentary Edge Trust...... $5,000 Tom Hern Sam Kelly Revolver Producer Master Classes Sam Kelly in association with Revolver Entertainment...... $850

Night Shift...... $9,179 Now What/Treatments workshop in association Chelsea Winstanley and Matt Noonan with NZWG...... $4,000 Zia Mandviwalla The Writer’s Room Series in association 65 Zia Mandviwalla with Script to Screen...... $5,000

Whakatiki...... $25,000 Mark Woods MIFF Discussions in association Melissa Dodds with 37°South...... $850 Bernadette Murphy Louise Leitch Killer Films Internship in association with Script to Screen...... $20,000 Indigenous Initiative Magma Short Film Workshops in association Waharoa Strategy ‘Maui – Te Paepae Ataata...... $100,000 with Magma Film Festival...... $5,000

L/Professional development Te Rangitawaea Workshops in association with Te Rangitawaea Festival...... $5,000 i) NZFC Initiatives Outlook for Someday Workshops...... $15,000 Trainee Feature Director Scheme (Shopping)...... $10,000 John Stevenson Masterclasses Trainee Feature Director Scheme (Top of the Lake)...... $10,000 in association with the GAV Trust...... $10,800

Trainee Feature Director Scheme (The Medicine Woman).... $10,000 Inspiring Stories Workshops Producer Intern Scheme (Shopping)...... $10,000 in association with Inspiring Stories Charitable Trust...... $38,400

Binger Director Lab...... $21,000 Mentorships in association with WIFT...... $10,000

Berlinale Talent Campus...... $14,000 Sian Jaquet Workshop in association with WIFT...... $1,330

Script Factory Workshops...... $30,000 ‘Welcome to the Firm’ Workshop in association with WIFT...... $813 Alan Sharp Workshops...... $15,000 Show Me Shorts Workshop Cinemart and Rotterdam Lab...... $40,082 in association with Show Me Shorts Film Festival...... $10,000 The Age of Stupid Workshops in association with WIFT...... $8,630 0/Certification as a New Zealand film (for purposes of the Income Tax Act) V48HOURS (talent development support)...... $15,000 Provisional Certification

M/Industry Infrastructure Support n/a Actors Equity...... $10,000 Final Certification Documentary Edge Festival Trust...... $15,000 Kiwi Flyer Film NZ...... $40,000 Kiwi Flyer Productions Ltd Feature film New Zealand Film & Video Technicians’ Guild (NZF&TVG)...... $10,000 Butterfly Crush Artmedia Ltd New Zealand Writers Guild (NZWG)...... $80,000 Feature film Nga- Aho Whakaari...... $54,000 Salmon World 3D Screen Directors Guild of New Zealand (SDGNZ)...... $90,000 Southern Gateway Tourism Ltd 3D tourism film Script to Screen...... $99,000

Screen Producers and Development Association P/Productions certified as official co-productions (SPADA)...... $85,500 Provisional Certification

Women in Film and Television New Zealand (WIFT NZ)...... $54,000 Emilie Richards: Tales from the South Pacific (Series 4) GFC (Germany) Ltd V48HOURS...... $20,000 Television series New Zealand International Film Festival...... $90,000 New Zealand from Above Wairoa Maori Film Festival...... $20,000 Making Movies Ltd Television documentary series N/Domestic theatrical distribution support Final Certification – print and publicity grants South Pacific Pictures/Sony for My Wedding Emilie Richards: Tales from the South Pacific (Series 3) and Other Secrets...... $33,321 GFC (Germany) Ltd Television series 66 Icon for Love Birds...... $26,367

Godzone Snark Productions for Russian Snark...... $2,500 Q/Screen production Incentive fund scheme (SPIF) approvals Metropolis for Love Story...... $18,739 i) Provisional Certification Transmission for The Orator (O Le Tulafale)...... $53,319 Top of the Lake Sony for Billy T: Te Movie...... $131,855 Top of the Lake Productions Ltd Television series South Pacific Pictures for Sione’s 2:Unfinished Business...... $100,000 Fresh Meat Gibson Group Fresh Meat Ltd Gamewhizz for The Devil’s Rock...... $13,073 Feature film

Wickcandle Film for Sky Whisperers Ranginui...... $5,000 Shopping Rialto for The Most Fun You Can Have Dying...... $31,573 Shopping NZ Ltd Feature film Antipodean Films for Rest for the Wicked...... $3,458 The Medicine Woman Rialto for Shihad: Beautiful Machine...... $57,120 Medicinal Films Ltd Feature film

New Zealand from Above Making Movies Ltd Television documentary series

Mt Zion New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand Small Axe Films Ltd Feature film Emilie Richards: Tales from the South Pacific (Series 4) GFC (Germany) Ltd Television series

Ergotism Bad Bread Ltd Feature film ii) Final Certification New Zealand Film Commission Annual Report Two Thousand and Twelve Aerial Assassins (aka Winged Warriors)...... $53,813 Rapter Productions Ltd Documentary

Emilie Richards: Tales from the South Pacific (Series 3).....$1,310,974 GFC (Germany) Ltd Television series

Life Force (Australia)...... $143,388 Natural History New Zealand Ltd Documentary

Life Force (New Zealand)...... $215,098 Natural History New Zealand Ltd Documentary

The Wot Wots (Series 2)...... $787,146 Spotty Ltd Partnership Animated television series

Two Little Boys...... $2,427,139 Tent Pole Films Ltd Feature film

67 Nzfc Operational Units and Staff As At 30 June 2012

Corporate

Graeme Mason Chief Executive

Rosalind Croad PA to Chief Executive

Mladen Ivancic Deputy Chief Executive

Naomi Wallwork Head of Business Affairs

Sarah Allerby Business Affairs Executive

Hannah Collins Receptionist

Janka Palinkas Accountant

Sophie Hathaway Accounts Assistant

Dominique Fromont Film Income Manager (part-time)

Gina Rogers Senior Communications Advisor (shared with NZ On Air)

Production and development

Kath Akuhata-Brown Development Executive

Katherine Fry Development Executive

Chris Payne Development Executive

Zelda Edwards Professional Development Executive (Acting)

Faith Dennis Development Co-ordinator

68 Lisa Chatfield Short Film Manager Hayden Ellis Short Film Assistant

Sam Burt Fresh Shorts Assistant 2012

Sales and marketing

James Thompson Head of Sales and Marketing

Rachel Corley Film Materials Manager

Jasmin McSweeney Marketing Executive

Beth Brash Sales and Marketing Assistant New Zealand Film Commission Annual Report Two Thousand and Twelve Two Annual Report Film Commission New Zealand Kiwi Flyer New Zealand Film Commission Annual Report Two Thousand and Twelve

69

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